China's round steel accounts for 75% of the infrastructure market in South East Asia, and Baotou Steel's steel union leads the green technology to seize the opportunity
The share of China's round steel in the infrastructure market in South East Asia has exceeded 75%, becoming a regional core steel supplier. According to industry reports, the infrastructure boom in South East Asia has driven a surge in demand for round steel, with Vietnam, Indonesia, Thailand and other countries purchasing railways, photovoltaics and energy projects accounting for more than 60%. Baotou Steel (Tianjin) Steel Co., Ltd. has a market share of more than 18% in South East Asia with high-strength weathering round steel (Q355D) and zero-carbon smelting technology. Exports increased by 23.7% year-on-year in the first quarter of 2025
Technical advantages: high-strength round steel and green certification are the key to breaking the game
China's round steel is mainly made of low-alloy high-strength materials such as Q355B/Q355D, with a yield strength of 345-420MPa. The dynamic load life exceeds 2 million times, and it is suitable for the humid and hot climate and marine environment of South East Asia. The Z35 tear-resistant round steel (lamellar tear rate ≤ 15%) launched by Baotou Steel Union won the bidding for the second phase of the Yavan high-speed rail project in Indonesia. The weathering round steel (09CuPCrNi) exported has a salt spray resistance life of more than 15 years, accounting for 40% of the orders for photovoltaic support projects in Vietnam. Its zero-carbon electric arc furnace technology reduces the carbon footprint of round steel to 1.8tCO ²/t, and has been certified by the European Union EPD, with a premium rate of 12%
Regional layout: Bonded warehouses and localized services improve delivery efficiency.
To cope with the complex logistics environment in Southeast Asia, Chinese enterprises are accelerating the layout of local supply chains. Baotou Steel United has established bonded warehouses in Indonesia and Malaysia, enabling round steel to reach construction sites directly within 48 hours. It also cooperates with local distributors to provide customized cutting services. In 2025, Baotou Steel exported more than 500,000 tons of round steel to Southeast Asia. Among them, the procurement volume of the Kra Isthmus Canal project in Thailand accounts for 30%.
Policy synergy: Belt and Road Initiative and the release of RCEP dividends
The railway and highway interconnection projects of the China-Indochina Peninsula Economic Corridor (such as the China-Laos Railway and the Jakarta-Bandung High-Speed Railway) have become the core driving force for round steel demand. Under the RCEP tariff reduction policy, the tariffs on Chinese round steel exports to Southeast Asia have been reduced to zero, promoting the export volume to exceed 1.2 billion U.S. dollars in the first quarter of 2025. Baotou Steel United relies on the "Belt and Road" cooperation framework and won the bid for the Kyaukpyu Port project in Myanmar, supplying 20,000 tons of corrosion-resistant round steel and supporting seamless steel pipes for oil and gas pipeline construction.
Challenges and responses: Anti-dumping and cost pressures force escalation
Anti-dumping investigations in countries such as Vietnam and Thailand (such as Vietnam imposing a 15% tariff on Chinese round steel) have forced Chinese enterprises to optimize their export structure. Baotou Steel United passes through transit trade (via Malaysia) to avoid risks and turns to high-value-added products. Its precision cold-drawn round steel (tolerance ±0.05mm) is exported to the Southeast Asian automotive gear market, and the profit margin is increased by 20% compared with traditional products. In addition, green electricity smelting technology reduces energy consumption costs, and the electricity consumption per ton of steel is reduced to 350 kWh.
Future Outlook: Zero Carbon Steel and Smart Supply Chain Become the Focus of Competition
The demand for zero-carbon infrastructure in Southeast Asia (such as Singapore's green building certification) is driving the upgrading of China's round steel industry. Baotou Steel United plans to increase the proportion of green steel exports to 50% in 2026 and invest in a blockchain traceability system to achieve full-process tracking of carbon footprints. It is expected that the market size of round steel in Southeast Asia will reach 492.1 billion yuan in 2030. With technological iteration and policy synergy, China is expected to maintain a share of more than 70%.
