Sahaviriya Steel Industries PLC

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Steel Industry and Market Overview

World Steel Industry in 2015

World Steel Association (“WSA”) reported an estimated figure of Global Apparent Steel Use of 1,513 million tons in 2015, an annual decrease of 1.7%. Global crude Steel Production in 2015 was approximately 1,599 million tons, an annual decrease of 2.9%. China contributed 50% of world crude steel production and maintained its position as the production leader, despite its 804 million tons output, an annual decrease of 2.3%.

An annual decrease of 1.7% in Global Apparent Steel Use in 2015 was due to the slowdown of the global economy mainly impacted by the slowdown of Chinese economy, especially in real estate sector, leading to an annual decrease of 3.5% in China Apparent Steel Use in 2015. There was also a decrease in Apparent Steel Use in Russia, Brazil and USA. However, Apparent Steel Use in ASEAN, MENA, India and Mexico improved from the previous year.

In term of steel prices in 2015, iron ore prices (CFR China) declined from the range of USD 52-72 per ton in Q1/2015 to the range of USD 48-67 per ton, USD45-60 per ton and USD 37-56 per ton in Q2/2015, Q3/2015 and Q4/2015 respectively. Meanwhile, slab prices (CFR East Asia Import) continuously decreased from the range of USD323-385 per ton in Q1/2015 to the range of USD 310-330 per ton, USD270-310 per ton and USD230-280 per ton in Q2/2015, Q3/2015 and Q4/2015 respectively. Likewise, HRC prices (FOB China) continuously decreased from the range of USD368-458 per ton in Q1/2015 to the range of USD 339-375 per ton, USD 264-335 per ton and USD 253-280 per ton in Q2/2015, Q3/2015 and Q4/2015 respectively.

Thailand Steel Industry in 2015

Thailand steel industry in 2015 reported total Apparent Steel Supply of 16.7 million tons, an annual decrease of 3.5% (Source: Iron and steel Institute of Thailand, ISIT). Flat steel consumption dropped by 5.2% YoY. Long steel consumption also dropped by 0.4% YoY, driven by a contraction of investment in private sector due to slower-than-expected recovery of economy.

In 2015, domestic steel production decreased by 4.4% YoY following the decline in domestic consumption. This was mainly resulted from the slighter-than-expected gross domestic product (GDP) growth in Thailand which expanded only 2.8% due to a contraction in export impacted by continuing global economic slowdown.

Prevailing Trade Remedy Measures against imported hot-rolled flat steel sheet and cold-rolled flat steel sheet in Thailand are as follows:

Products Country of Origin Measures Duty Rate Status1) Effective Period
HRC China, Malaysia Anti-dumping 23.57% - 42.51% Final 12 Aug 11 – 11 Aug 16
HRC
(with Boron added)
China Anti-dumping 14.28% - 19.47% Final 26 Dec 12 – 25 Dec 17
HRC Japan, South Africa, Russia, Kazakhstan, India, South Korea, Taiwan, Venezuela, Argentina, Ukraine, Algeria, Indonesia, Slovakia, Romania Anti-dumping 0% - 128.11% Final 22 May 15 - 21 May 20
HRC (with other elements added) All (UN developing countries excluded, except Turkey) Safeguard 41.67%
40.42%
39.21%
Final 27 Feb 16 – 26 Feb 17
27 Feb 17 – 26 Feb 18
27 Feb 18 – 26 Feb 19
HRC (without other elements added; thickness 0.9-50 mm and width 600-3,048 mm) All (UN developing countries excluded, except Brazil) Safeguard 21.92%
21.52%
21.13%
Final 24 Dec 14 – 6 Jun 15
7 Jun 15 – 6 Jun 16
7 Jun 16 – 6 Jun 17
CRC China, Vietnam, Taiwan Anti-dumping 4.22% - 20.11% Final 6 Feb 14 – 5 Feb 19

1) According to Thai regulations, the two stages of AD and Safeguard are Provisional and Final Measure. Provisional Measure may be imposed if there is clear evidence and a preliminary determination that increased imports have caused or are threatening to cause serious injury. After making the Final Determination that dumped imports are causing injury for AD or imports are causing serious injury for SG, the Final measures will be applied.

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Contact us (Bangkok Office)

2nd - 3rd Floor, Prapawit Building, 28/1 Surasak Road, Silom, Bangrak, Bangkok 10500.

  • Tel : (662) 238-3063-82
  • Fax : (662) 236-8890, 236-8892

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Contact us (Plant Office)

9 Moo 7 Ban Klang Na - Yai Ploy Road, Mae Rumphueng, Bang Saphan, Prachuap Khirikhan 77140

  • Tel : (66-32) 691-403-5, 691-412-5, 691-419-20
  • Fax : (66-32) 691-416, 691-421

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