China’s Steel Exports to ASEAN Surge, Sparking Concerns Among Regional Producers

• 5 May 2025
• Construction Focus
• 2238 Views

In a significant development for the steel industry, China’s steel exports to ASEAN countries have skyrocketed in the first quarter of 2025, reaching 36.55 million tons. This figure constitutes approximately 70% of China’s total steel exports and marks a staggering 32% increase year on year, according to a recent report by Yieh News.

The report highlights particularly remarkable growth in exports to individual ASEAN nations, with Malaysia seeing a dramatic rise of 71.3% and Vietnam experiencing an increase of 68.5%. These figures have raised alarms within the ASEAN Steel Committee (AISC), which has voiced its deep concern over the implications of this export surge for regional steel producers.

AISC urges the Chinese government to reconsider its current policy on export tax exemptions, warning that without timely intervention, the escalating trend of Chinese steel exports could exert significant pressure on domestic steel manufacturers within ASEAN countries.

While AISC acknowledges that the lower prices of Chinese steel can help keep construction costs in the region manageable—reportedly 3% to 5% lower than domestic production—this benefit is overshadowed by the potential harm to local industries.

In light of these developments, AISC is calling for immediate action from China, including limitations on exports of steel products that ASEAN countries are capable of producing themselves, as well as the repeal of the export duty exemption policy. The committee emphasizes that taking these steps is essential to ensure a fair, competitive landscape for steel producers in the region while maintaining sustainable industry practices.

• Economy and Finance
• economics analysis