Southeast Asia at risk of steel capacity glut, Worldsteel chief warns
According to the head of the Worldsteel association, Southeast Asia faces the risk of a supply glut driven by rapidly rising production capacity. Speaking to Nikkei Asia, the official warned that new investment in the region could outpace demand. A capacity glut could pressure prices and trade balances.
Speaking to Nikkei Asia, the head of the Worldsteel association warned that Southeast Asia faces the risk of a steel capacity glut. The official said new production plants coming online rapidly in the region could outpace demand.
The warning came at a time when steel demand depends on the pace of growth in regional economies. If a supply glut develops, prices could come under pressure and competition in export markets could intensify, the official said.
The steel sector is watched as an indicator sensitive to demand in areas such as infrastructure and construction. The Worldsteel official stressed that investment decisions need to be balanced against the demand outlook.
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