# Thailand Steel Industry Analysis Report, 2018-2023

- Link: https://www.thailand-business-news.com/markets/172654-thailand-steel-industry-analysis-report-2018-2023
- Published: 2024-11-05T04:35:28+07:00
- Author: SiamNews PR

**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.**

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## 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.

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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.

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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 &](https://www.globenewswire.com/news-release/2024/10/31/2972775/0/en/Thailand-Steel-Industry-Research-Report-2018-2023-2024-2033.html?rand=157097)