Steel imports exceed $372 million in 2023, modest 3% increase
CAMBODIA imported iron and steel worth over $372 million in 2023, marking a more than 3% increase compared to the previous year, despite a slowdown in the construction sector, as reported by the General Department of Customs and Excise (GDCE).
The import value of iron and steel, categorised under tariff classification Harmonised System (HS) Code 72, reached $372.47 million, a 3.5% increase from $359.82 million year-on-year. The figure represents 1.5% of the country’s total imports, which amounted to $24.18 billion in 2023.
For December 2023 alone, Code 72 imports totalled $39.24 million, a significant 21.1% uptick from $32.41 million in December 2022.
Chiv Sivpheng, general manager of the Cambodia Constructors Association (CCA), told The Post about the recent recovery of the country’s construction sector following a period of stagnation amid the Covid-19 epidemic.
He noted that as construction activities increased, so did the demand for steel and other building materials.
Sivpheng expressed optimism, stating that barring major global political and economic upheavals, the construction and real estate sectors worldwide, including in Cambodia, are poised for recovery.
“The improvement in global economic growth, especially in Cambodia, has aided the Cambodian construction sector in 2023 to fare better than in 2022, leading to a rise in imports of construction materials, including iron and steel,” he explained.
However, Sivpheng also pointed out that the sector’s recovery is inherently slower due to its extensive capital investment requirements and longer timelines, emphasising that it would need more time to fully rebound.
He said the country currently operates its own steel mills for construction purposes, while the majority of its Code 72 imports come from Vietnam, China and Thailand.
Cheng Kheng, CEO of CPL Real Estate, shared insights based on his three decades of experience in Cambodia’s real estate and construction sectors at the Cambodian Valuers and Estate Agents Association’s (CVEA) annual meeting on December 11.
He noted that the sectors had underperformed from early 2020 until early 2023, largely due to the impacts of the Covid-19 crisis and geopolitical tensions.
However, Kheng observed emerging signs of recovery in the two interrelated industries.
“In general, I see that by the end of 2023, real estate and construction activities have gradually resumed. I believe this is a positive indicator that the sectors will be on the path to recovery in 2024,” he said.
On October 20, 2023, the Council for the Development of Cambodia (CDC) granted a final certificate of registration to Huale Steel (Cambodia) Co Ltd.
The company, with a $40 million investment, is located in the Sihanoukville Special Economic Zone (SSEZ) in coastal Preah Sihanouk province. There are also operational steel mills in Banteay Meanchey and Kampong Speu provinces, as per the CDC.