Zhejiang Yongjin Metal Technology (Yongjin Metal) announced a US$125M investment in its second stainless-steel plant in Vietnam with a 260ktpy capacity. 

Stainless steel production has ramped up in China in tandem with total crude steel output over the last two decades, such that over half of global stainless steel is produced in the country since 2014. While China’s steel industry in general is restructuring and moving into a consolidation phase, stainless steel production is expected to continue to grow with a further 7Mtpy capacity already in the pipeline, equivalent to over 12% of the current global output. 

At the same time, other Southeast Asian countries are also becoming more central to steel growth. Yongjin Metal’s investments include a stainless steel plant in Thailand due to start construction in Q4 2023 as well as a plant set for construction in Indonesia. The Indonesian government has used an export ban on nickel ores to secure investment in nickel pig iron (NPI) and 300-series stainless steel plants. 

Southeast Asian stainless steel (and steel in general) is ramping up to support both growing domestic demand in the region, as well as capture potential markets in the West, where heavy industrial plants have been struggling for some time. The energy crisis in Europe last year added further pressure for companies to keep the furnaces operating and despite near-shoring geopolitics at the centre of critical material initiatives, these industries have a challenging road ahead to keep costs competitive against an ongoing growing production base in Southeast Asia.