Page 25 - Tata Steel One Report 2024-Eng-Ebook HY

Business Operation and Performance Driving Business Towards Sustainability Corporate Governance Policy Financial Statements Attachments
Demand for long product in Thailand was 6.23 million tonnes, which went up by 0.6% year-on-year. Import volume was 2.89 million tonnes, 46.4% of the demand for long product in Thailand, increased by 9.9% year-on-year.
Table showing production/import/export/usage of steel in Thailand
Year
Production Quantity (Million Tons)
Growth (%)
Import (Million Tons)
Growth (%)
Export (Million Tons)
Growth (%)
Usage Requirement (Million Tons)
Growth (%)
Import
(% of Usage Requirement)
2024
6.29
-4.7
11.40
1.7
1.39
-5.8
16.30
-0.2
69.9
2023
6.60
-7.0
11.21
4.0
1.48
-0.6
16.33
-0.4
68.6
2022
7.10
-7.6
10.78
-13.1
1.49
4.7
16.39
-12.2
65.8
2021
7.69
6.7
12.40
19.1
1.42
25.6
18.67
13.3
66.5
2020
7.16
-8.2
10.40
-15.0
1.11
-19.6
16.45
-11.7
63.3
2019
7.80
-13.7
12.23
1.4
1.38
-21.1
18.64
-3.6
65.6
2018
9.03
-3.1
12.05
6.54
1.75
12.9
19.33
1.3
62.4
2017
9.32
-2.4
11.33
-10.2
1.55
20.0
19.10
-8.5
59.3
2016
9.54
46.8
12.61
10.3
1.29
8.1
20.86
24.6
60.5
2015
6.50
-3.7
11.44
-3.94
1.20
-11.4
16.74
-3.2
68.3
2014
6.75
-5.2
11.90
-2.9
1.35
-3.1
17.35
-3.7
68.8
Source: Iron and Steel Institute of Thailand
Competitive scenario
Domestic Market
Competitors of the Company can be classified into four categories as below:
1. ManufacturerswithElectricArcFurnace(EAF)using scrap as raw material. They manufacture semi- finished product called billet to produce finished steel products such as Rebar, Wire Rod, Structural steel and Special steel. This method can remove impurities up to almost 100%, resulting in consistent quality products. Rebars made through EAF route are marked accordingly to educate the consumers.
2. ManufacturerswithInductionFurnace(IF)usingscrap as raw material. They manufacture semi-finished product called billet to produce finished steel products such as Rebar, wire rod and Sections. There is no secondary refining in this method and hence, there may be some impurities in these products. Rebars made through IF route are marked accordingly to keep the consumers informed.
3. Re-rollersusingdomesticandimportedbillet.These producers do not have steel making operations. Finished products from these manufacturers include Rebar, Wire Rod, Sections and Special products.
4. Importers of finished products such as Rebar, Wire Rod, Sections and Special products as a user as well as a distributor.
Considering current capacity of domestic Rebar, Wire Rod and Section, totaling over 15 million tons, compared to the domestic demand for long products in 2024 at 6.23 million tonnes, capacity utilization rate is around 29%. The remaining capacity is sufficient to meet current / future domestic demand and there should not be any need to import or invest in capacity.
In 2024, Thai economy has expanded from the previous year’s. The main reason is the recovery of tourism, expansion in private consumption expenditure and government consumption expenditure and year- end stimulus measures for vulnerable groups. Some investments related to government projects were affected by the delay in budget disbursement for 2024, especially in the first half of the year. It has
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