Steel Industry and Market Overview
World Steel Industry in 2019
World Steel Association (“WSA”) reported an estimated figure of Crude Steel Production in 2019 at 1,838 million tons, increased 2.76% from 2018. China maintained its position as the production leader, accounting for 54.07% of total crude steel production with 994 million tons of crude steel, an increase of 7.10 % from 2018.
In term of steel prices in 2019, Hot Rolled Coil prices (FOB China) had increased from the range of 480 – 536 USD/MT in Q1/2019 to the range of 483-531 USD/MT in Q2/2019. However, it had consecutively decreased to the range of 452-510 USD/MT and 430-483 USD/MT in Q3/2019 and Q4/2019 respectively. Likewise, slab prices (CFR East Asia Import) had risen from 459 USD/MT in Q1/2019 to the 470 USD/MT in Q2/2019. In contrast, it had continuously decreased to 427 USD/MT and 386 USD/MT in Q3/2019 and Q4/2019 respectively. Another point is that, Iron ore price (CFR China) had shown an upward trend in the first 3-consecutive-quarter which was 82 USD/MT, 101 USD/MT and 102 USD/MT. On the other hand, it had decreased to 89 USD/MT in Q4/2019.
Thailand Steel Industry in 2019
Thailand steel industry in 2019 reported Total Apparent Steel Supply of 18.40 million tons, decreased 4.5% from 2018 (Source: Iron and steel Institute of Thailand, ISIT). Considering steel consumption by products, the most risen steel consumption was long steel product, decreased by 7.30% YoY while flat steel consumption was reported increased by 2.70% YoY.
In 2019, domestic steel production was approximately 7.60 million tons, decreased by 15.5% YoY,