Steel Imports From China Increase in Value but Vietnam Retains Weight Market Share

• 2 July 2019
• Local News
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As Cambodia’s steel industry mostly relies on foreign imports, China and Vietnam are capitalising on this market with each country importing more than US200 million worth of steel from the total imports of US$900 million within the last three years.

According to the latest figured from the department of domestic trade of the Ministry of Commerce, between 2016 to the first six month of 2018, Cambodia imported a total of more than 1.5 million tons of iron and steel worth around US$903 million in value from more than 20 countries.

As the leader in construction investment in Cambodia, Chinese steel imports have increased over the past two years and is now ranked as the top importer in terms of value with Vietnam holding the biggest market share in terms of net weight.

Over the first quarter of 2019, Cambodia received more than US$2.7 billion in construction investment for which China accounted for most of that investment valued at approximately US$315 million.

From the US$903 million figure, China has a US$246.77 million share, equivalent to about 433 thousand tons of steel in that period and in 2018 its total imports to Cambodia increased significantly, surpassing Vietnam which dominated the market in 2016.

Along with the increase in imports, more steel factories through Chinese investment are being planned across the country, especially in Sihanoukville where construction projects have mushroomed over the past few years with even more projects in the pipeline.

Situated in the Sihanoukville Special Economic Zone in Prey Nop district, ground is expected to be broken this year on a huge steel factory, while China’s top steel manufacture, China Baowu Steel Group, is conducting a feasibility study to move two blast furnaces from Xinjiang to Cambodia in late 2019. The company plans to ship two blast furnaces capable of producing 3.1 million tons of metal and two converters to turn iron into steel.

In 2018, a Chinese firm Hai Sheng Steel Co., Ltd was also granted a license to build a US$31.07 million steel plant in Kampong Speu Province.

Despite having been ranked as the second iron and steel importer over the last three years, Vietnam imported more than US$246.45 million worth of steel, an equivalent to more than 446 thousand tons of steel, exceeding the total net imported from China.

Hoa Phat, the top Vietnam steel importer to Cambodia has also announced plan to build a US$500 million steel factory capable of producing between 1-2 million tons of steel every year in Stueng Hav in Sihanoukville.

CEO and Chairman of ISI Group Kang Leng said during the Cambodia Steel Industry Forum that there are plenty more opportunities for growth, hence more opportunities for further developing the steel industry in Cambodia.

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