A steel worker prepares metal cages to support reinforced concrete columns at the site of a new overpass project in Phnom Penh. Post Staff
Cambodia imported more than $400 million worth of iron and steel in the first eight months of the year, an increase of nearly 60% on the same period last year.
This has given some hope that the housing construction sector may be gradually picking up momentum and recovering from its recent slump. Industry insiders have warned that this may not necessarily be the case.
The General Department of Customs and Excise (GDCE) reported that between January and August 2024, Cambodia imported $404.85 million worth of Harmonised System Chapter 72 (HS 72) products – a class of tariff which includes iron and steel.
This represents a 59.2% increase compared to the same period in 2023, when imports totalled $254.37 million.
The value of Iron and steel imports accounted for 2.1% of Cambodia's total of $18.9 billion in imports during this period. In contrast, in 2023, HS 72 imports represented 1.6% of the total.
In August 2024 alone, Cambodia imported $51.89 million worth of HS 72 products, an increase of 35.1% compared to August 2023, when imports stood at $38.42 million.
In 2023, Cambodia imported $529.05 million worth of HS 72 products, a decrease of 13.1% from $608.56 million in 2022.
Huy Vanna, secretary-general of the Cambodian Housing Development Association, told The Post on October 9 that the increase of iron and steel imports does not necessarily indicate that Cambodia's construction sector is experiencing strong growth, as iron and steel can be used for various purposes outside of construction.
He noted that at present, there are almost no new housing construction projects being initiated in the Kingdom.
“Construction and the buying and selling of housing in Cambodia have almost come to a standstill at this time. These issues are linked to global economic growth, as well as economic activity within Cambodia itself,” he explained.
According to Vanna, the rise of iron and steel imports over the past nine months could also be due to the material needs of infrastructure projects such as airports, ports and parking facilities.
Chiv Sivpheng, general manager of the Cambodian Constructors Association, suggested that after a significant slowdown during the Covid-19 pandemic, Cambodia’s construction sector is gradually recovering, although not at a rapid pace. When construction activity picks up, the demand for steel and other construction materials also increases.
He added that if there are no further major political and economic challenges globally, the construction and real estate sectors, both globally and in Cambodia, are expected to recover.
“The improvement in global economic growth, including in Cambodia, has helped the Cambodian construction sector avoid the negative signs seen 3-4 years ago,” he said.
