snoop1130 Posted June 7 Share Posted June 7 Thailand’s sluggish car sales prompted an 11 to 12% decline in premium-grade steel sales during the first four months of 2024, raising concerns about reduced steel consumption this year, according to the Federation of Thai Industries (FTI). FTI Iron and Steel Industry Club Vice-Chairman Nava Chantanasurakon stated that local steel manufacturers are bracing for a tough period, with expectations of a drop in steel demand across all industrial sectors. “The premium-grade steel supplied to the automotive industry decreased because car production decreased and domestic car sales dropped amid weak consumer purchasing power and debt issues.” High household debt levels have led banks to become more cautious, imposing stricter criteria for car loans to avoid non-performing loans. In the fourth quarter of 2023, household debt reached 16.3 trillion baht (US$448 billion), representing 91.3% of the GDP, as reported by the National Economic and Social Development Council. The FTI’s Automotive Industry Club reported a 17% year-on-year decrease in car manufacturing from January to April, totalling 518,790 units. During the same period, domestic car sales fell by 23.9% year-on-year, amounting to 210,494 units. Naved noted that lower demand for products used in house improvement and delayed state budget spending on new construction projects have also contributed to the below-average steel sales. Thailand’s annual steel consumption is approximately 16 million tonnes, with current capacity utilisation at a record low of 28%. Nava anticipates a further reduction in steel consumption during the latter half of 2024 due to the rainy season, which aligns with the off-peak period for the steel market. The impact of cheap steel imports from China remains a significant concern. Tata Steel (Thailand) Plc, a subsidiary of India’s largest steelmaker, expressed worries as China continues to flood Southeast Asia with inexpensive steel products amid its slowing economy. Nava also voiced apprehension over Chinese steelmaker Xin Ke Yuan Steel’s plan to establish a hot-rolled steel factory in Rayong with a production capacity of 6 million tonnes, which could intensify market competition. “The Board of Investment is considering approving its investment plan. Approval of the plan would affect local steel manufacturers.” As the market conditions evolve, the Thai steel industry faces multiple challenges, from domestic consumption drops to the pressures of international competition, necessitating strategic adjustments to navigate this complex landscape, reported Bangkok Post. By Ryan Turner Image courtesy of Honda Maliwan / Facebook Source: The Thaiger 2024-06-07 Get our Daily Newsletter - Click HERE to subscribe 1 Link to comment Share on other sites More sharing options...
hotchilli Posted June 7 Share Posted June 7 14 hours ago, snoop1130 said: The impact of cheap steel imports from China remains a significant concern. Tata Steel (Thailand) Plc, a subsidiary of India’s largest steelmaker, expressed worries as China continues to flood Southeast Asia with inexpensive steel products amid its slowing economy. Nava also voiced apprehension over Chinese steelmaker Xin Ke Yuan Steel’s plan to establish a hot-rolled steel factory in Rayong with a production capacity of 6 million tonnes, which could intensify market competition. Oh dear what to do.... Link to comment Share on other sites More sharing options...
OneZero Posted June 8 Share Posted June 8 Prior post in US media: Trump Is Right: We Should Raise Tariffs on China - The American Conservative US let China manufacture everything in order to get less expensive goods. Inexpensive products the PRC subsidized, to quote Rubio ...."with handouts, tax breaks, financing incentives, stolen intellectual property, and even slave labor." Link to comment Share on other sites More sharing options...
Paul Henry Posted June 8 Share Posted June 8 Where does the over valued baht sit in this? Will not only be steel but most Thai produced products will face the same headwind. Link to comment Share on other sites More sharing options...
spidermike007 Posted June 8 Share Posted June 8 Car sales here have been sluggish for a few years now. The biggest problem is China. That overly toxic government is dumping, big time. Thai companies cannot compete. 65 steel companies here have gone under in the past year. Flush with supply, Chinese manufacturers offer Thai buyers a cheaper price than local steelmakers. In 2023, the price of coated steel from China was 39% lower than Thai products. Chinese rolled steel sold at a 16% discount. Even without Chinese imports, steel overcapacity looms over Southeast Asia's emerging economies. Mills in Thailand, Vietnam, Indonesia, Malaysia, Singapore and the Philippines will be able to produce at least 147 million tonnes of steel by 2026, up from 75.3 million tonnes in 2021. https://asia.nikkei.com/Economy/Trade/Thailand-considers-new-anti-dumping-measures-against-Chinese-steel Link to comment Share on other sites More sharing options...
Lancelot01 Posted June 8 Share Posted June 8 15 hours ago, hotchilli said: Oh dear what to do.... The UK Stagecoach Bus effect, produce low, wipe out all the competition, then when you are the only option, monopolise the vacuum. 1 Link to comment Share on other sites More sharing options...
still kicking Posted June 8 Share Posted June 8 Cars are mad from Plastic these days Link to comment Share on other sites More sharing options...
hotchilli Posted June 8 Share Posted June 8 7 hours ago, Lancelot01 said: The UK Stagecoach Bus effect, produce low, wipe out all the competition, then when you are the only option, monopolise the vacuum. China's MO, subsidise the exported products to wipe out Thia steel industry, set up a plant in Rayong with incentives from the government, then start as the major supplier of steel in Thailands own back yard. 1 Link to comment Share on other sites More sharing options...
hotchilli Posted June 8 Share Posted June 8 6 hours ago, still kicking said: Cars are mad from Plastic these days Plastic engines, plastic chassis, plastic brakes, plastic wheels, plastic gearboxes, plastic drive trains, plastic bearings....? 1 Link to comment Share on other sites More sharing options...
phil2407 Posted June 9 Share Posted June 9 Didn’t Tata steel buy British Steel with a big bull on the M1 in Sheffield? Link to comment Share on other sites More sharing options...
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