SS400 material and so on steel overcapacity in Malaysia will also affect China market

At present, Malaysia's steel industry is in a dilemma of overcapacity. According to the data of MISIF and MSA, in 2018, the existing and potential capacity of SS400 material and so on steel in the country totaled over 24 million tons, including long and flat products, while the demand was only estimated at 9.7 million tons.

On May 7, 2020, the China Iron and Steel Industry Association held a meeting for key iron and steel enterprises to coordinate the epidemic prevention and control and the healthy operation of the industry, and unswervingly took the road of high-quality development. Some experts in the industry said that "with Chinese steel enterprises going out one after another to build factories in ASEAN and keep a firm foothold in succession, the supply capacity of SS400 material and so on steel in the region will increase significantly in the future; at the same time, the cost of SS400 material and so on steel production in the ASEAN region is far lower than that of China. Therefore, in the future, the trade relationship between China and ASEAN is likely to reverse - ASEAN's steel will flow back to China, which will cause great changes in China's supply-demand relationship.