South East Asia
In Malaysia, some of the long-detained containers at port terminals are beginning to show signs of movement. A limited number of customers have managed to re-export their stranded containers by reclassifying the cargo under the “electronic miscellaneous goods” category. However, the available quota for such declarations remains highly restricted and the overall costs associated with this process are expected to be relatively high.
At the same time, shipping lines continue to maintain a firm position, with little willingness to negotiate or reduce accumulated demurrage and detention (D&D) charges. In several extreme cases, containers have remained stranded for more than 700 days, resulting in D&D liabilities that now substantially exceed the original cargo value.
The prolonged detentions have also created lasting concerns and distrust among many suppliers towards Malaysian customs authorities and regulatory processes. As a result, a significant number of exporters and traders have become increasingly cautious about shipping material into Malaysia, contributing to tighter raw material availability and to comparatively more constrained feedstock supply in Malaysia than in several neighbouring markets.
Thailand continues to operate relatively steadily for the time being, but pressure within the market is gradually increasing and some processors are already facing significant operational and financial strain. Industry participants are becoming increasingly concerned that a situation similar to that in Malaysia could eventually emerge in Thailand if regulatory controls and customs scrutiny continue to tighten across the region. As uncertainty grows, many companies are adopting a more cautious approach towards inventory, imports and long-term investment planning. This sense of risk has also pushed some processors and manufacturers into actively exploring alternative processing and production destinations. Pakistan and Bangladesh have both attracted increasing attention owing to their lower operating costs and developing industrial bases. At the same time, Vietnam remains one of the most attractive alternative markets in the region: its annual demand for ADC12 aluminium alloy ingots is estimated at approximately 120,000 tonnes, with domestic production believed to satisfy only around half of the total, leaving the market heavily reliant on imported raw materials and secondary aluminium feedstock.
Vietnam’s aluminium extrusion and downstream manufacturing sectors are relatively mature and highly competitive within South East Asia, supported by strong export-orientated industrial growth. However, the market continues to face challenges linked to global trade tensions, particularly those associated with the ongoing China-USA trade conflict. Both raw material imports and finished product exports are subject to increasing regulatory scrutiny, trade restrictions and shifting compliance requirements, which continue to create uncertainty for regional manufacturers and exporters.
