Industry News

1、 Core driver of market demand
The demand for post disaster reconstruction has surged
In March 2025, a 7.9-magnitude earthquake struck Myanmar, causing extensive damage to houses and infrastructure. Post disaster reconstruction has led to a short-term surge in demand for light steel keel, resulting in a significant increase in the utilization rate of local building materials enterprises' production capacity. The construction industry is expected to expand at an annual rate of 7.3% from 2026 to 2028, further expanding its application scenarios.
Policy dividends and influx of foreign investment
The New Investment Law (2021) allows foreign investment to hold 100% of the shares and freely export profits. The import tariffs for building materials are lower than those of neighboring ASEAN countries, attracting Chinese enterprises to accelerate the layout of localized production capacity. By 2025, the United States will impose a 145% tariff on Chinese goods, prompting manufacturing orders to shift to Myanmar and a 50% increase in demand for industrial plant construction, indirectly driving demand for light steel keel.
Climate adaptability advantage
The high temperature and rainy environment require building materials to be corrosion-resistant, and the light steel keel is galvanized to adapt to humid and hot climates, which is prominently applied in coastal hotels and resorts projects.

2、 Current situation and challenges of supply chain
Serious shortage of local production capacity
About 300 local building materials enterprises have outdated technology, and high-end light steel joists rely on imports. China accounts for 62% of the total steel imports; Basic materials such as color coated rolls need to be imported from China, and the weak supporting industrial chain restricts localized production.
Cost and infrastructure bottlenecks
Unstable power supply: Industrial areas experience an average of 2 power outages per week, which increases production costs by 5-8%.
Low logistics efficiency: Transportation outside the core area takes a long time, and raw material imports rely on port transshipment, with transportation costs accounting for over 20%.
Risk of Trade Policy Fluctuations
Starting from January 2025, the calculation of import and export taxes will resume the fixed exchange rate of the central bank (1 US dollar to 2100 kyat), and changes in exchange rate policies will increase uncertainty in import costs; Myanmar plans to impose tariffs on Chinese hot-rolled coil steel, and needs to anticipate the dynamics of anti-dumping policies.

3、 Competitive Landscape and Market Strategy
Participant layout
Local enterprises: dominate the low-end market (such as building hardware accessories), with weak technology and low product added value.
Chinese funded enterprises: rapidly expanding through franchise models. Case studies show that a certain brand's stores increased from 3 to 50 within 2 years, reducing costs by 23% through centralized procurement and improving turnover efficiency by 40% through intelligent inventory management systems.
Access barriers
Certification compliance: It must comply with international fire safety standards (such as EN 13501-2) and local CR mark certification.
Distribution channels: Focused on the traditional building materials market (such as Yangon distribution center), the dealer network is a key competitive factor.