Thailand targets dumping of Chinese coated steel
Data from the National Statistical Office of China And the Iron and Steel Association of the world Report corresponds that during the first 5 months of 2020, Chinese steel output has not decreased even from last year at all.
Report of the production of Crude steel, a semi-finished raw material for the production of all types of steel products during January – April 2020. China produced + 1.3% increase of 319 million tons and should be. Even more frightening is that China has just released its production figures in May 2020, with 92 million tons of output in addition to a very high increase of + 4.2% compared to May 2019 and +8.5. % Compared with April 2020, making the production record for this month a record high
In addition, on the contrary Information on production of all types of continuous industrial products that use steel as raw materials. As reported by the National Statistical Office of China Showing a severe contraction in all groups from Industrial production shrank sharply in the range from -3.1% to -32.1%, while investment in fixed assets & construction declined sharply in the range of -6.3% to -15.9%. Some groups may have signs of recovery such as Car production which grew + 27% in May, but there are still many signs of recovery, such as fabric fasteners and air conditioners in May 2020. Shrinkage -8.2% and -14.7%
Therefore, in the condition that the demand for steel of downstream industries, the steel consumers, shrank sharply between -3.1% to -32.1% but the production volume of Chinese steelmakers has not decreased at all. Therefore is an unusual situation And is a huge risk of the steel industry in various countries In the world including Thailand
From the database of international trade Confirm that China mainly focuses on exporting coated steel sheets to Thailand. By increasing exports since 2015 and continuously increasing every year The highest in 2019 at 1.88 million tons, or + 123% in 4 years. Moreover, for January – April 2020, exports were 0.82 million tons, up by + 63%. When compared to the same period of the year It is expected to increase to 1 million tons in May.
It has been estimated that in March 2020, all types of Chinese steel stocks reached 100 million tons + 203% compared to 2019, while Thailand’s import statistics for April 2020 showed Abnormalities of imports from China The imports of painted zinc-zinc alloy steel sheet (PPGL) in Thailand in April 2020 totaled 63,188.62 tons, increased from March 63 + 62.3%. The main countries that affected the abnormality are Imports from China
Import of PPGL from China amounted to 55,106.08 tons, increased from March 63 + 79.8% and was the highest record in Thailand. Resulting in the proportion of imports from China equal to 87.21% compared to imports from all countries This proportion has increased every year from 75.47% in April 2018 and 82.78% in April 2019 and is considered the highest proportion of imports from China in Thailand.
In addition to PPGL products, there are also cases of imports of hot-dip galvanized steel sheets (GI) from Thailand from China with the same pattern of irregularities, in which by April 2020, imports from China reached 173,156 tons, making statistics. Also a record high of this category
The import of PPGL steel increased abnormally in April 63 and is the same as GI steel. Both products are under investigation. The AD measures show that Chinese steelmakers have to rely on the internal market. Thailand To continuously produce high-volume products within China To reduce costs Contrary to market conditions, China’s demand for steel is severe and has not yet recovered. And returned to Thailand with unusually high amounts Which is a clear act of dumping And greatly affecting domestic producers.