Thailand's steel industry wary of major Chinese push

[webfact]

Steel industry wary of major Chinese push

By The Nation

 

File Photo

 

Thailand’s steel industry, already battling unstable prices, is edgy ascompetitors from China are all set to be back in business with full government support.

 

Domestic steel producers will have to adjust rapidly and begin to cut production due to the impact of Covid-19 on downstream industries that have continuously slowed down production, suspension of automobile production while the private sector is holding off on new projects.

 

The steel industry has reportedly been worried about the risk of oversupply and shrinking demand in China when the logistics system returns to normal. Chinese steelmakers will definitely find a way to release huge stocks of products as exports to Thailand, experts believe. The Chinese government has issued urgent measures to support exports by announcing an additional 3 per cent tax compensation (from 10 to 13 per cent), effective from March 20.

 

China's worldwide export volume has shrunk from 73.4 million tonnes in 2017 to 62.2 million tonnes in 2019, but China's exports to Thailand continued to increase from 3.1 million tonnes in 2017 to 3.5 million tonnes in 2018 and 3.7 million tonnes in 2019, representing a 20 per cent growth rate in the said period.

 

Clearly, Thailand is the target of Chinese steel exports, according to industry experts. And this time, as many years ago, when the Chinese government announced it would discard old machinery and manufacture over 100 million tonnes of steel, a lot of the steel spilled into Thailand and Asean and the old machines were used to set up steel factories outside China, including Thailand, with a price fight strategy (selling 20-30 per cent cheaper).

 

According to Customs statistics, Thailand imported 502,963 tonnes of steel from China in the first two months of 2020, down 14 per cent from the same period in 2019, but found irregularities in the flat steel products with abnormally increased imports while some products imported from China had increased by 379 per cent.

 

Korrakod Padungjit, secretary-general of the Federation of Thai Industries' iron and steel industry club, said that the Thai private sector wants the government to find a way to prevent imports that will spill into the future with increasing volumes and a very low price. Importers say the price of steel from China has been continuously offered at a very low price since they could not export to the US and the EU. This is the reason why they dump their stocks in Thailand and other Asean countries.

 

Source: https://www.nationthailand.com/business/30386344

 

-- © Copyright The Nation Thailand 2020-04-20

 

- Whatever you're going through, the Samaritans are here for you

- Follow Thaivisa on LINE for breaking COVID-19 updates

[ukrules]

1 hour ago, webfact said:

Korrakod Padungjit, secretary-general of the Federation of Thai Industries' iron and steel industry club, said that the Thai private sector wants the government to find a way to prevent imports that will spill into the future with increasing volumes and a very low price. Importers say the price of steel from China has been continuously offered at a very low price since they could not export to the US and the EU. This is the reason why they dump their stocks in Thailand and other Asean countries.

They could tax it at 100% like they do with imports from the west.

 

Of course they won't do that, not to their Chinese masters

[bangkokfrog]

31 minutes ago, ukrules said:

They could tax it at 100% like they do with imports from the west.

 

Of course they won't do that, not to their Chinese masters

So true, and the so-called "push" will likely send many Thai businesses over the edge. To quote the Bard... et tu brute!

Edited April 19, 2020 by bangkokfrog

[Grumpy John]

The government can fix the problem with a substantial tariff.  Of course they won't!  Lets hope that it's better quality square and round tube than what is on offer now.  But I doubt it!

[727Sky]

I wish everyone and I do mean everyone would read how China messed over Italy and other countries. How their actions are destroying countries infrastructure the world over.

https://www.traditioninaction.org/HotTopics/i99ht_137_Ita.html

 

Keep dancing with the devil and sooner or later he will own your soul.

[hotchilli]

5 hours ago, ukrules said:

They could tax it at 100% like they do with imports from the west.

 

Of course they won't do that, not to their Chinese masters

It's hard to stick two fingers up at the a*rse you're kissing!

[AgMech Cowboy]

Put tariffs on the the China steel and charge them with dumping practices at the ITO.

[Redline]

Going the way of Cambodia-they already control the water

[GreasyFingers]

Would they please import some cast iron hot plates so I can make a real BBQ.