Thailand Steel Industry Report - H1, 2012

October 2012 | 34 pages | ID: T951F0BA624EN
Emerging Markets Direct

Abstracts

The global steel industry was faced with many challenges in 2011 and H1/2012, arising from the adverse external environment, soft international steel demand and volatile raw material prices. Thailand was hit hard from both the global economic uncertainty and local massive flooding, causing the GDP year on year growth in 2011 to drop to mere 0.1% compared to the plan of 4.5%. Overall, the country’s steel production and exports declined significantly as the floods disrupted supply chains and operations in Q4/2011.

Domestic steel consumption increased by 3.3% year on year to 14.5mn tonnes in 2011, much lower than the 31% increase in 2010. The Iron and Steel Institute of Thailand (ISIT) estimated that steel consumption in 2012 would grow by at least 5%, driven by post-flood reconstruction spending from both the public and private sectors. The growth in the demand for steel would also be supported by a significant expansion in the automotive and electronic industries.

Many domestic steel companies were badly affected by the severe floods and global economic slowdown, which eroded their operating margins. Going forward, more resilience in operating results is expected as plants resume production to normal levels and sale volume increases.

Key Points:

• Thailand’s steel consumption registered a slower growth of 3.3% to 14.5mn tonnes in 2011, accounting for the largest share (28%) among the ASEAN countries.
• Domestic production of finished steel products fell by 6.7% to 9.3mn tonnes in 2011 as a result of the devastating floods.
• Thailand should see a 4.5% to 5.5% GDP growth in 2012 attributed to the government’s income generating policies and recovery in the industrial production sector after the floods.

Contents

1. INDUSTRY PROFILE

1.1 Global steel overview
1.2 ASEAN steel overview
1.3 Thailand steel overview
1.4 Production
  1.4.1 Productivity
  1.4.2 Capacity utilisation
1.5 Consumption
1.6 Foreign trade
  1.6.1 Imports
  1.6.2 Exports
1.7 Prices

2. MARKET TRENDS AND OUTLOOK

2.1 Investment
2.2 Anti-dumping duties
2.3 Impact of Thai floods
2.4 Impact of Chinese exports
2.5 Government strategies
2.6 Market outlook

3. LEADING PLAYERS AND COMPARATIVE MATRIX

3.1 Company profile
  3.1.1 Sahaviriya Steel Industries PCL
  3.1.2 G Steel Public Company Limited
  3.1.3 Tata Steel (Thailand) PCL
3.2 Comparative matrix
3.3 SWOT analysis

4. TABLES & CHARTS

Table 1: Global apparent steel use (ASU) for finished steel products (2011–2013)
Table 2: Global crude steel production (2009–2012) (mn tonnes)
Table 3: Top 10 steel producing countries (2011 vs. 2010) (mn tonnes)
Table 4: ASEAN apparent steel consumption (2011 vs. 2010) (metric tonnes)
Table 5: Thailand steel production statistics (2007–2011) (metric tonnes)
Table 6: Thailand production by finished steel products (2007–2011) (metric tonnes)
Table 7: Capacity utilisation rate by products (2007–2012) (%)
Table 8: Thailand apparent steel consumption of total steel products (2007–2011) (metric tonnes)
Table 9: Thailand apparent steel consumption by finished steel products (2007–2011) (metric tonnes)
Table 10: Thailand imports of iron and steel products (2007–2011) (metric tonnes)
Table 11: Thailand exports of iron and steel products (2007–2011) (metric tonnes)
Table 12: Asian steel prices (USD/tonne) (Jun 2010–Jun 2012)
Table 13: World steel prices (USD/tonne) (Jun 2011–Jun 2012)
Table 14: Global steelmaking raw material and input costs (Jun 2010–Jun 2012)
Table 15: Anti-dumping duties on hot-rolled steel products (as of May 2009)
Table 16: Flood impact on Thailand’s GDP in 2011
Table 17: Post-flood rehabilitation spending (2012–2014)
Table 18: Thailand construction, automotive and electronic industries outlook 2012
Table 19: SSI performance highlights (H1/2012 vs. H2/2011)
Table 20: SSI financial highlights (2007–H1/2012)
Table 21: GSTEEL income structure (2011 vs. 2010)
Table 22: GSTEEL financial highlights (2007–H1/2012)
Table 23: TSTH financial highlights (2007/08–Q12012/13)
Table 24: Key financial ratios comparison of the leading players
Chart 1: Top 10 steel producing companies in 2011
Chart 2: ASEAN production, import, export and consumption (2006–2011)
Chart 3: Thailand steel industry end-users in 2011
Chart 4: Thailand total steel production and consumption (2002–2011)
Chart 5: Industrial production index (2000=100) (2002–2012)
Chart 6: Labour productivity index (2000=100) (2002–2012)
Chart 7: Thailand import and export of iron & steel products (2002–2011)
Chart 8: Steel price index (% change y/y) (Dec 2000–Apr 2012)
Chart 9: Imported iron and steel from China (Q1/2008–Q2/2012)
Chart 10: TSTH revenue structure in 2011-12 (THB mn)