Steel Industry and Market Overview

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,