Chinese Steel Floods Thailand, Triggering Anti-Dumping Investigation
The Thai Ministry of Commerce is investigating and considering anti-dumping measures against some Chinese hot-rolled steel coil companies.
According to Thailand’s Department of Foreign Trade (DFT), the investigation might conclude as early as June this year.
Previously, the department received petitions from some of the country’s largest hot-rolled steel manufacturers. These Thai companies are struggling to sell their products.
The petitioners requested DFT to investigate 17 Chinese steel manufacturers who are suspected of evading anti-dumping duties by altering the composition of their steel products.
Thai authorities have found evidence that some Chinese steel manufacturers are changing their products to dump them on the market.
"We should protect the domestic steel industry in case of supply chain disruptions or impacts from geopolitical conflicts," said Wirote Rotewatanacha, president of the Iron and Steel Institute of Thailand, in an interview with Nikkei Asia.
With abundant supply, Chinese steel manufacturers offer their products at more competitive prices compared to Thai domestic steel producers.
In 2023, the price of color-coated steel from China was 39% lower than that produced in Thailand. Additionally, Chinese steel coils were sold at a 16% discount.
During a public hearing with DFT, importers of Chinese steel in Thailand opposed the petition. They argued that poor investment decisions led to the domestic steel industry's loss of competitiveness.
"Thai steel producers should focus on improving product quality and expanding sales channels to avoid price competition. Otherwise, they will lose to imports, despite government protection measures," warned the Economic Intelligence Center of Siam Commercial Bank.
Southeast Asia Faces Steel Surplus
Even without imports from China, emerging economies in Southeast Asia face a steel surplus.
Plants in Thailand, Vietnam, Indonesia, Malaysia, Singapore, and the Philippines are expected to produce at least 147 million tons of steel by 2026, an increase of 75.3 million tons from 2021.
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