Thailand’s steel sales drop 8.7% amid cheap Chinese imports

[snoop1130]

 

Thailand’s steel industry faced sluggish sales in the first five months of this year due to reduced spending on construction projects and the influx of cheap imports from China, according to Tata Steel (Thailand) Plc (TSTH), a subsidiary of India’s largest steelmaker.

 

Long steel product consumption fell by 8.7% year-on-year to 2.47 million tonnes as stated by Tarun Kuma Daga, president and chief executive of TSTH. Total steel consumption also decreased by 6.9% between January and May as he noted.

 

The company predicts that total steel consumption this year will remain steady at 16.3 million tonnes, mirroring the previous year’s figures. This outlook is primarily influenced by delays in the government’s budget allocation for fiscal 2024 and a slowdown in the construction sector.

 

The House of Representatives approved the budget spending allocation plan in March, aimed at bolstering the overall economy. This came after a prolonged delay in budget planning for fiscal 2024, which started on October 1 last year.

 

Daga anticipates an increase in government spending on construction and infrastructure projects in the third quarter of this year.

 

 

Despite the potential for improvement in the steel market, the company remains cautious due to the intense competition resulting from the influx of low-cost steel into ASEAN.

 

China’s steel exports to ASEAN countries, including Thailand, surged by 20.3% year-on-year during the first five months, reaching 45.5 million tonnes.

 

Chinese firms have been exporting steel directly to Thailand or rerouting it through neighbouring countries for re-export to Thailand, Daga explained.

 

From January to May, Thailand’s import of wire rod steel from China rose by 10% year-on-year to 566,000 tonnes.

 

In 2023, Thailand’s wire rod steel imports from China increased by 9% year-on-year, totalling 1.22 million tonnes.

 

TSTH is pivoting towards steel exports, particularly in emerging markets, to counteract the decline in domestic sales, said Daga.

 

“The steel export sector is still healthy and is expected to drive up our revenue.”

 

TSTH reported its operating results for the period between April and June, showing a 10% increase in revenue year-on-year, reaching 6.83 billion baht, with profits amounting to 93 million baht, reported Bangkok Post.

 

By Sarishti Arora

Picture courtesy of Telegraph India official website

 

Full story: The Thaiger 2024-07-29

 

 

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[Ralf001]

Yep, cheaper to import from China.

[connda]

It's called "competition," and it's the basis of a free market.

The Chinese government helps its corporations. 

Ok - so what?  The Communist Party of China makes long-term economic plans, something the West is incapable of doing, and then works with their manufacturing base to produce goods at prices which can't be beat by nations whose governments and corporations can't plan beyond their own noses as short-term gains are the name of the game in the West.  And Thailand is incapable of producing long-range plans that aren't completely politicized - just like the West. If you can't compete, get out of the market before you're shaken out - or - join the economic union and work together with China and other members of the BRICS as a partner and be part of the long-term plans.
"Evil China is over-producing!  Grrrrr!"
And consumers world-wide benefit instead of greedy corporations who pay their government's politicians to provide them with the means to "maximize profits" by screwing the average man, woman, and child in the marketplace. 

[nakhonandy]

Everyone knows China heavily subsidises it's export industries, the goal being to get a significant chunk of the market. Once that is established they can gradually increase the price.

 

It's up to Thailand to recognise that and ensure its own industries are able to compete.

[hotchilli]

21 hours ago, Ralf001 said:

Yep, cheaper to import from China.

Chinese steel is heavily subsidised.. 

[Snackbar]

Trump will put a stop to this ecobullying 

[NoDisplayName]

21 hours ago, snoop1130 said:

TSTH is pivoting towards steel exports, particularly in emerging markets, to counteract the decline in domestic sales, said Daga.

 

China export to emerging markets, bad!

Thailand export to emerging markets, good!

[spidermike007]

The ugly habit of the CCP sponsoring industry to keep their economy alive, hurts alot of nations. China needs to be called out and punished, severely. They are a real threat to the region. 

[Srikcir]

It's called "compensation," and it's the basis of Thailand's colonial relation with China.

Frankly a 8.7% year-on-year Chinese steel increase seems inadequate for China. Expect continued Chinese export to reach at least 15%.

[DaveInSukhumvit]

18 hours ago, hotchilli said:

Chinese steel is heavily subsidised.. 

Likely true: https://gemini.google.com/app/30b5b8d6ee2378ec

[MalcolmB]

17 hours ago, spidermike007 said:

The ugly habit of the CCP sponsoring industry to keep their economy alive, hurts alot of nations. China needs to be called out and punished, severely. They are a real threat to the region. 

The USA doesn’t sponsor industry?

 

https://www.reuters.com/business/autos-transportation/us-offers-12-billion-automakers-suppliers-make-advanced-vehicles-2023-08-31/

[spidermike007]

1 hour ago, MalcolmB said:

The USA doesn’t sponsor industry?

 

https://www.reuters.com/business/autos-transportation/us-offers-12-billion-automakers-suppliers-make-advanced-vehicles-2023-08-31/

Very rarely. This is an entirely different program. Not the same at all, of subsidizing an entire industry to enable them to lower prices. Apples and watermelons. 

[Celsius]

Chinese steal 

[Grumpy one]

Will this cheap steel cause any problems with the existing fine building codes  

 

[MalcolmB]

On 7/30/2024 at 3:12 PM, spidermike007 said:

The ugly habit of the CCP sponsoring industry to keep their economy alive, hurts alot of nations. China needs to be called out and punished, severely. They are a real threat to the region. 

Ok then how about this one.

Apples with apples.

 

U.S. steel companies and workers since the 1970s have probably received more government assistance than any industry in the country. This includes hundreds of import restrictions; tens of billions of dollars in state, local and federal subsidies and bailouts; exemptions from environmental regulations; special “Buy American” rules just for integrated steelmakers like U.S. Steel; and federal pension benefit guarantees.

 

 

https://www.cato.org/commentary/us-steel-ubiquitous-market-failure

 

 

[BKKKevin]

On 7/30/2024 at 2:09 PM, Snackbar said:

Trump will put a stop to this ecobullying 

Have I got a wall to sell you!... 

[spidermike007]

3 hours ago, BKKKevin said:

Have I got a wall to sell you!... 

There's no need to sell him the wall, remember Mexico's going to pay for it! The check is in the mail.