In 2025, the output value of manufacturing in Southeast Asia will account for more than 25% of GDP, and the three pillar industries of electronic manufacturing, automobiles, and textiles and clothing will accelerate their expansion. Vietnam's electronic product exports exceeded US$109.7 billion, Thailand's automobile production reached 2 million vehicles, and Malaysia's semiconductor exports accounted for 7% of the world. In this round of industrial upgrading, the demand for steel as a basic material has surged, and galvanized steel and color-coated steel have become the core categories of manufacturing procurement due to their wide application in construction, automobiles, and home appliances. This article analyzes the market trends in Southeast Asia and explores how collaborative procurement strategies can help companies reduce costs and increase efficiency.
Southeast Asian steel market trends: galvanized steel and color-coated steel demand surges
1. Manufacturing upgrade drives demand structure change
The proportion of hot-rolled coil consumption in Southeast Asia has dropped from 44.1% to 36.8%, while the demand for coated plates (including galvanized plates and color-coated plates) has increased by an average of 9.1% per year. Vietnam's crude steel output in 2024 will reach 19.2 million tons, and Thailand's apparent consumption of finished steel will be 18.5 million tons, of which the proportion of steel used in the automotive manufacturing industry will reach 37%. Driven by the electric vehicle policy, Thailand's "3030 Policy" aims to have electric vehicles account for 30% by 2030, directly driving the demand for high-strength galvanized steel.
2. Construction and infrastructure sectors continue to increase in volume
The urbanization rate in Southeast Asia has increased by an average of 1.5% per year. Vietnam's steel consumption is expected to reach 23.3 million tons in 2025, 89% of which will be used in the construction industry. Thailand's 298 billion baht railway project has been launched, driving a 12% increase in demand for weather-resistant color-coated steel. Malaysia's "World Heritage Cycling Route" and other cultural and tourism projects have further expanded the application scenarios of color-coated plates for light steel structures.
Core advantages and implementation paths of collaborative procurement
1. Economies of scale reduce overall costs
Through centralized procurement, companies can integrate galvanized steel and color-coated steel orders and use batch advantages to obtain supplier price discounts. The case shows that Hubei A Steel Trading Company has normalized hedging of rebar over-the-counter options through over-the-counter options tools, with a cumulative transaction volume of more than 200,000 tons, effectively hedging price volatility risks. Southeast Asian companies can refer to this model, combine the characteristics of local market demand fluctuations, design call/put option combinations, and lock in procurement costs.
2. Supply chain collaboration optimizes inventory management
The collaborative procurement platform can achieve full life cycle management of suppliers and monitor inventory levels through digital systems. For example, Zhongtian Steel uses a "public cloud + private cloud" hybrid architecture to achieve real-time interaction of procurement-production-logistics data, increasing inventory turnover by 30%. Southeast Asian companies can introduce similar systems to integrate procurement plans for galvanized steel and color-coated steel to reduce redundant inventory.
3. Unified technical standards improve quality
The upgrading of Southeast Asian manufacturing industry has put forward higher requirements for steel performance. Collaborative procurement can promote suppliers to adopt unified technical standards. For example, the Thai automobile manufacturing industry requires that the zinc layer thickness of galvanized steel is ≥80g/m², and the weather resistance of color-coated plates must pass ISO 9227 salt spray test. Through centralized negotiations, companies can require suppliers to provide products that meet multi-national certifications to reduce quality risks.
Suggestions on purchasing strategies for major markets in Southeast Asia
1. Vietnam market: focus on long-process steel mill resources
Vietnam's long-process steel mills such as Hoa Phat Steel and Formosa Ha Tinh account for 68.3% of the country's production capacity, and the uniformity of the zinc layer of their galvanized steel products is better than that of electric arc furnace companies. When purchasing, you can give priority to such suppliers and use the Hanoi-Ho Chi Minh City logistics trunk line to control the transportation cost within US$50 per ton of steel.
2. Thailand market: focus on short-process electric arc furnace companies
The capacity utilization rate of Thailand's short-process electric arc furnace is only 31.25%, but the scrap steel recovery rate is 66.7%, which is suitable for small-batch, multi-specification color-coated steel purchases. You can obtain more flexible payment terms through local agents recommended by the Thai Chamber of Commerce.
3. Malaysian market: layout of semiconductor industry supporting facilities
The demand for ultra-thin galvanized steel at Intel factories in Malaysia has increased by 15% annually. It can cooperate with local electronic manufacturers (such as Panasonic Malaysia) to carry out collaborative procurement and share the JIT (Just-in-Time) distribution network to reduce the delivery cycle from 45 days to 28 days.
Risk management and long-term cooperation mechanism
1. Exchange rate fluctuation hedging strategy
The depreciation pressure of Southeast Asian currencies continues. It is recommended to adopt a mixed settlement method of 30% RMB + 70% US dollars and use forward exchange rate tools. For example, the annual fluctuation of the rupiah against the US dollar exceeds 10%. Through NDF (non-deliverable forward), 90% of the exchange rate risk can be locked.
2. Green supply chain certification
The ESG (environment, social and governance) standards in Southeast Asia are becoming stricter. Suppliers certified by ISO 14001 should be given priority when purchasing. Companies such as Safa Group in Malaysia have achieved 100% recycling of waste acid from galvanizing lines, which is in line with the green procurement trend in Southeast Asia.
3. Construction of localized service network
Joint warehouses are set up in industrial centers such as Ho Chi Minh City and Bangkok to provide value-added services such as galvanized steel cutting and color-coated plate profiling. Vietnam MiX Snacks has become a regional distribution leader through a 50,000+ SKU strategy, and its "central warehouse + forward warehouse" model can be used as a reference in the steel field.
Conclusion: Collaborative procurement empowers strategic layout in Southeast Asia
The expansion of Southeast Asian manufacturing has created historic opportunities for collaborative procurement of galvanized steel and color-coated steel. Through economies of scale, supply chain collaboration, and unified technical standards, companies can reduce overall costs by 10%-15% and establish long-term and stable supplier relationships. Formulating procurement strategies in combination with local market characteristics and using financial instruments to hedge risks will become the core capabilities of steel foreign trade companies to compete in Southeast Asia.