After Dexin Steel Indonesia launches the third blast furnace at Morowali Industrial Park, Central Sulawesi province, the annual production capacity of crude steel will be raised by 2 million tons to 6 million tons from next month. The planned yearly production of steel bar, wire rod, billet, and slab will be 1 million tons, 1 million tons, 2.2 million tons, and 1.8 million tons.

Besides, Eastern Steel, a Malaysian steel manufacturer, is planning to commission the second blast furnace at its existing steel plant in Kemaman, Malaysia in September. The annual installed capacity of crude steel at this plant will be increased to 2.7 million tons from the current 700,000 to 800,000 tons.

Eastern Steel is also constructing a new hot-rolled strip mill, with a capacity of 2 million tons per year. The new mill was scheduled to be put into operation in June 2024.

With the two new blast furnaces commissioned in Southeast Asia, steel production will increase greatly, mainly for export markets. However, the steel market is likely to face an oversupply problem in the fourth quarter.