China will invest in the metallurgy of Southeast Asia

In 2023, China will seek to control the growth of steel production and replace old equipment with more environmentally friendly equipment through capacity replacement. But, on the other hand, it will invest more manufacturing capacity in the ASEAN countries so that its colossal steel industry can keep going.

Despite problems with sales in the domestic market, China is eyeing investment in Southeast Asia. Steel demand in ASEAN rose 3.5% year on year last year. New production capacity in the next few years will reach 90.8 million tons.

Chinese capital has also invested in several large projects to sell steel back to China. Last year, Esteel Enterprise, a Singapore-based enterprise with Chinese capital, planned to build a green steel plant in Malaysia by 2025.
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