Posted on 05 Nov 2024
The “Thailand Steel Industry Research Report 2024-2033” provides a comprehensive analysis of the steel sector in Thailand, detailing its production capacity, major players, and the ongoing challenges and opportunities within the market. Thailand’s annual steel production capacity stands at approximately 10 million tons, predominantly utilizing the electric arc furnace (EAF) method. Key companies include GSteel, GJSteel, and Tata Steel Thailand, with Nippon Steel notably acquiring significant stakes in both GSteel and GJSteel.
Despite this capacity, the efficiency of Thai steel companies is hampered by low equipment utilization rates, leading to a substantial reliance on imports, particularly for flat steel, where 70-75% comes from Japan, China, and South Korea. Thailand’s limited raw material resources, illustrated by its meager iron ore production, exacerbate this dependency. The Phu Ang Iron Ore Mine, with its estimated 10.9 million tons of reserves, is the country’s largest ore supplier but cannot meet domestic demand.
The influx of inexpensive steel products, particularly from Russia following geopolitical sanctions, poses an additional risk to the local industry. Thai manufacturers fear that this competition could severely disrupt domestic production, especially with the rising proportion of steel consumption from imports—rising from 62.3% in 2018 to nearly 69% by 2023. Local producers have urged the government for protective measures, but past anti-dumping policies have had limited efficacy, largely because of the higher costs associated with locally produced steel.
Looking ahead to 2024-2033, industry analysts predict that Thailand’s steel production and consumption will experience modest growth driven by economic expansion and increasing exports to neighboring Southeast Asian countries. However, ongoing competitive pressures, particularly from lower-cost producers in the region, mean that without significant adaptations—such as cost reduction and product diversification—the Thai steel industry may struggle to maintain its market presence and meet future demand effectively.
Source:Thailand Business News