Thailand’s steel industry report (2024-2033) highlights 10 million tons capacity, heavy reliance on imports, concerns over cheap foreign steel, and limited growth due to high production costs and inadequate local resources.
Key Points
- Thailand’s steel industry, primarily utilizing electric arc furnace (EAF) technology, has an annual production capacity of about 10 million tons, with major companies including GSteel and Tata Steel Thailand. The country heavily relies on imports for its steel needs, particularly flat steel, with 70-75% sourced externally, leading to domestic production shortages.
- Japan, China, and South Korea are the main steel import sources, while the US, Indonesia, and Vietnam are key export destinations. Local manufacturers express concern over increased cheap steel imports from Russia and China, which could adversely impact domestic production, especially as 60% of Thailand’s steel consumption depends on imports.
- Anticipated trends from 2024 to 2033 suggest a gradual rise in steel production and consumption due to Thailand’s economic strength, despite challenges like high production costs compared to regional competitors. A focus on reducing production costs and diversifying product offerings is essential for Thai steelmakers to mitigate the effects of rising imports.
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 Steel Industry Research Report, 2018-2023 &
