Logo of Phnom Penh Post newspaper Phnom Penh Post - Jan-Jul imports of iron, steel up 20% to $215M



Jan-Jul imports of iron, steel up 20% to $215M

Content image - Phnom Penh Post
Cambodia imported iron and steel worth $215.26 million in the first seven months of 2022, up by 20.1 per cent over the $179.18 million recorded in the same period last year. Heng Chivoan

Jan-Jul imports of iron, steel up 20% to $215M

Cambodia imported $215.26 million worth of iron and steel in the first seven months of 2022, up by 20.1 per cent over the $179.18 million logged in the same period in 2021, Customs reported, as the construction sector and general economic situation in the Kingdom continue to improve.

This accounted for 1.13 per cent of the value of the Kingdom’s total imports over the period, at more than $19.051 billion, data from the General Department of Customs and Excise of Cambodia show.

In July alone, iron and steel imports amounted to $29.49 million, up by 20.6 per cent from the $24.46 million recorded in the same month of 2021.

Speaking to The Post on September 4, Global Real Estate Association president Sam Soknoeun commented that the construction sector is “gradually” recovering as new projects start to pick up steam after two years of Covid-induced slowdown.

He credited the increase in imports of iron, steel and other construction materials to effective government management of Covid-19 and a step-up in work on developments that had been suspended or slowed down during the pandemic.

With the volume of iron and steel imports largely tied to construction, Soknoeun predicts that imports would further increase as the world rolls back Covid-related restrictions.

He claimed that although the real estate market staged a V-shaped recovery, transactions have yet to reach pre-Covid levels.

On the other hand, Huy Vanna, secretary-general of advisory firm Housing Development Association of Cambodia (HDAC), says that construction activity is “not good at the moment” and could remain stagnant “for a long time” without a meaningful let-up in global crises like Covid-19, the Ukraine conflict and the Taiwan issue.

“All of these issues affect cash flows and global economic growth as a whole,” he said, pointing out that the condominium segment is the worst-hit in Cambodia as a result of the international crises.

Regarding iron and steel costs for the construction sector, Vanna stated: “Although iron and steel prices for the construction sector increased by about 20-30 per cent in the first quarter of 2022, they fell back in the second quarter. Overall, the prices of iron and steel in the first half of 2022 are about the same as last year.”

He says the Kingdom generally imports iron and steel from markets such as Vietnam, Thailand and China.

However, a growing number of investors are entering the Cambodian steelmaking market. For example, in early December 2020, amid the Covid-19 pandemic, Chinese-owned Hong De Sheng (Cambodia) Steel Co Ltd’s $16.7 million steelworks in Kampong Speu province began operations. In its initial stage, the factory was said to have an annual production capacity of 500,000 tonnes.

The Ministry of Land Management, Urban Planning and Construction says it approved a total of 2,000 construction projects in the first half of 2022, representing an area of 2.860 million square metres and capital investment of $1.206 billion.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Cambodia's Bokator now officially in World Heritage List

    UNESCO has officially inscribed Cambodia’s “Kun Lbokator”, commonly known as Bokator, on the World Heritage List, according to Minister of Culture and Fine Arts Phoeurng Sackona in her brief report to Prime Minister Hun Sen on the night of November 29. Her report, which was

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Sub-Decree approves $30M for mine clearance

    The Cambodian government established the ‘Mine-Free Cambodia 2025 Foundation’, and released an initial budget of $30 million. Based on the progress of the foundation in 2023, 2024 and 2025, more funds will be added from the national budget and other sources. In a sub-decree signed by Prime Minister Hun Sen

  • Two senior GDP officials defect to CPP

    Two senior officials of the Grassroots Democratic Party (GDP) have asked to join the Cambodian People’s Party (CPP), after apparently failing to forge a political alliance in the run-up to the 2023 general election. Yang Saing Koma, chairman of the GDP board, and Lek Sothear,

  • Cambodia's poverty cut in half from 2009 to 2019: World Bank report

    A report published by the World Bank on November 28 states that Cambodia’s national poverty rate fell by almost half between 2009 and 2019, but the Covid-19 pandemic recently reversed some of the poverty reduction progress. Cambodia’s poverty rate dropped from 33.8 to 17.8 per cent over the 10