In terms of supply, the structure of the steel industry in Southeast Asia presents the following characteristics: Only a handful of iron-smelting production capacities are available; steel making is mainly based on electric arc furnace steel making, and production capacity is very limited; rolling capacity is relatively large, and after continuous investment in recent years.

The production capacity has grown rapidly, but the deep processing capacity of steel products with added value has not been sufficient. EAF steel making uses scrap as its main raw material, while the small amount of scrap accumulated in South-East Asia and the large amount of imports have created a cost burden. Compared with billets produced in China, South Korea, Japan, and the Commonwealth of Independent States in the long-process model, there is no price advantage.

Therefore, for a long time, rolling mills in Southeast Asia are more willing to import low-price billet materials from abroad, resulting in long-term development of iron making and steel making capabilities in the region. Even so, the steel products produced by rolling mills in Southeast Asia are still unable to compete with Chinese imports in terms of prices.

Due to factors such as technological level, the mid- to high-end steel market is dominated by products such as Japan and South Korea, which has led to the continued utilization of capacity by local steel companies decline. According to statistics, in the past 10 years, the use of crude steel capacity in the ASEAN countries has continued to decline, gradually falling from 80% to less than 50%.