Page 26 - Tata Steel One Report 2024-Eng-Ebook HY

Business Operation and Performance Driving Business Towards Sustainability
Corporate Governance Policy Financial Statements Attachments
adversely affected the domestic steel business that the government infrastructure projects being the key support to the domestic steel demand. And resulting in a further decrease in the demand for steel in Thailand from 2023. In addition, the domestic competition from the Induction Furnace manufacturers has become more intense. So, the company has a mitigation strategy to continuously improve its capabilities to produce high quality and special grades to supply in the market and to the government projects, in particular.
The global economic environment continues to face challenges and uncertainties from various factors such as issues in China’s real estate sector, geopolitical tensions and financial market volatility.
As a result, 2024 has been a year in which global steel demand continued to face difficulties, as the global manufacturing sector continued to grapple with persistent headwinds such as declining household purchasing power, aggressive monetary tightening, and escalating geopolitical uncertainties. The ongoing weakness in housing construction was driven by tight financing conditions and high costs, leading to sluggish steel demand. In particular, China's real estate sector continued to be sluggish and put pressure on the Chinese economy in 2024, resulting in a weakening of demand for steel in China. Consequently, Chinese manufacturers have focused more on exports to compensate for the slowdown in country, which resulted in global market prices of steel products to fluctuate and decline. In particular, the volume of imported wire rod products in Thailand increased significantly from the previous year. Moreover, wire rod imports from ASEAN countries such as Malaysia, Indonesia and Vietnam as well as imports from
other countries such as India and Russia, have increased. The Company continues to closely monitor the imports of Wire Rod into Thailand.
The market share of the Company in the past few years is, as below:
The Company conducts customer satisfaction survey once in two years for every customer group. The survey covers 6 aspects: product quality, product availability, sales team, transportation, finance and marketing activities. For Customer satisfaction survey in financial year 2025 which is the customer satisfaction pulse survey by internal departments within the company. The survey asked some factors that are important to the company. The satisfaction survey result received a score of 82% where product quality got the highest satisfaction score when compared to the other factors.
Export Market
The Company has focused on exports to countries like Laos, Cambodia, Indonesia Vietnam and Malaysia in the ASEAN region, and Canada, Japan, Taiwan, Singapore and Australia. Major competition in Laos and Cambodia is from Vietnam steel manufacturers and domestic player that is owned by Chinese, while China is the dominant player in Myanmar. However, ‘Made in Thailand’ and ‘Tata Tiscon’ enjoy a good reputation in the neighboring countries and are recognized for their superior quality. Accordingly, the Company has been working to strengthen the network in these countries.
Year
FY25
FY24
FY23
FY22
FY21
Total market share
19%
19%
20%
21%
22%
Export details for the period of 1 April 2024 – 31 March 2025:
Country
Rebar (RB, DB & BIC)
Wire rod
FY 2025
FY 2024
FY 2023
Portion (%)
Mn THB
Portion (%)
Mn THB
Portion (%)
Mn THB
Portion (%)
Mn THB
Portion (%)
Mn THB
ASEAN
27%
962
73%
1,036
39%
1,998
33%
1,030
28%
1,231
ASIA
60%
2,035
8%
125
46%
2,160
28%
901
31%
1,364
Other
13%
465
19%
256
15%
721
39%
1,150
41%
2,004
Total
100%
3,462
100%
1,417
100%
4,879
100%
3,081
100%
4,599
24 Tata Steel (Thailand) Public Company Limited