China aims to control the growth of steel production through capacity replacement in 2023 and replace old equipment with more environmentally friendly equipment. However, on the other hand, it is thought that more production capacity investments will be made in ASEAN countries in order to keep the huge steel industry operating.
Despite the difficulties in domestic sales, China is pursuing investments in Southeast Asia. It is seen that the steel demand in ASEAN increased by 3.5% compared to last year. The new production capacity will amount 90.8 million tons in the next few years.
Chinese capital has also invested in several major projects to sell the steel back to China. Last year, Steel Enterprise, a Singaporean enterprise with Chinese capital, was planning to build a green steel plant in Malaysia by 2025.