Yunnan-based Kunming Steel plans to build a two-stage blast furnace steel plant, 2 million tonnes per year, as well as sintering, coke-chemical and electricity generation facilities. The mill's product profile will include hot rolled coils, rebar and wire rod.
The plant is slated to supply steel to the import-dominated Myanmar market and export any surplus to neighboring countries. Steel imports to Myanmar since 2014 have been around 2-3 million tons per year. The project is part of China's renowned Belt and Road Initiative in 2013 in Southeast Asia and part of efforts to expand ties between Yunnan and Southeast Asia.
According to the forecast of the Institute of Metallurgy of Southeast Asia, in 2020 the demand for steel in Myanmar will be about 3 million tons, and in 2025 - 5 million tons, which is mainly due to the needs of the construction sector. The bulk of the demand for steel in the country is for rebar.
As of February 2019, Myanmar's total production capacity was less than 1 million tonnes per annum, with a billet production of around 400,000 tonnes per annum and a rolling capacity of about 500,000 to 600,000 tonnes per annum. coated sheet steel - about 300,000 - 500,000 tons per year.
