Overview of Steel Industry in Thailand

Mr. Hin Navawongse

Iron and Steel Institute of Thailand
November 2006

Contents

Thailand steel situation

Specific Energy Consumption
(SEC) in 1999 - 2004

Integrated steel production process

Iron ore + Coke

Ironmaking

or

Iron ore + Natural gas

Pig iron
Sponge iron

Hot metal

Scrap
Steelmaking
& casting

Basic oxygen Furnace

Electric Arc Furnace

Billet
Bloom
Steel forming

Slab

Heavy Section
Round bar, Deformed bar

Hot rolled plate

Hot rolled coil

Cold rolled coil

Cold
formed
section

HDG

Wire rod

EG
Light section

Tin plate, tin free

Pipe

Downstream
industry

Construction

Auto parts

Appliance

Furniture

Packaging

HDG
Pipe

The decline since second half of 2005 was mainly derived from a slowdown in
consumer expenditure and investment.

Thailand Apparent Steel Consumption (million MT)

16

13.88, 9.6%

14
12.66, 16%

12

8.31, -15.7%

10
8
6
4
2
0
1997

1998

Production

1999

2000

Import

2001

2002

2003

Export

2004

2005

2005
JanAug

2006
JanAug

Apparent Consumption
3

Source : ISIT

Long Products

Consumption (000(000
MT) MT)
BarBar
Consumption
450
400
350
300
250
200

Thailand Long Product Apparent Consumption (million MT)

5.56, 22%

150
100
50

5.61, 1%

3.50, -15.6%

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug

2004

2005

2006

4
Production

Import

Export

Consumption

3
2
1

Consumption (000 MT)

WireWire
rodrod
Consumption
(000 MT)
180

0
1997

1998

1999

2000

Production

2001

Import

2002

2003

Export

2004

2005

2005
JanAug

2006
JanAug

Apparent Consumption

160
140
120
100
80
60
40
20
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug

Long Product
Production
Import
Export
Apparent Consumption

Unit : 000 MT
2005 Jan-Aug 2006 Jan-Aug %Change
3,664
3,134
-14.5%
674
618
-8.4%
194
252
30.3%
4,145
3,500
-15.6%

2004

Production

2005

Import

Export

2006

Consumption

4
Source : ISIT

Bar
Bar production
Producers
Unit : 000 MT

Production

3,235

3,293

2,700

2,712

- Millineum Steel

- Bangsaphan Bar mill

- Bangkok Steel Industry

- Chonviriya Steel

- Burapa Steel Industries

- Thai Steel Profile

- Other

2003

2004

2005

2006E

Bar import - export

Import
Export

232

230
182

158

88
47

2003
Source : ISIT

45

2004

35
2005

2006E

Major sources
(import)

Main destination
(export)

-S.Korea

- USA

- Taiwan

- Cambodia

- Japan

- Lao Republic

- China

- Australia
5

Wire rod
Wire rod supply

Producers
- Siam Iron and Steel (2001)

Unit : 000 MT

- Bangkok Industrial Steel Work

- Tycoons Worldwide

Production

1,120

891

1,024

844

- Other

2003

2004

2005

Wire rod import - export

2006E

Import
Export

365

- Thai Special Steel Industry

407

358

398

2003

2004

2005

2006E

Major sources
(import)

Main destination
(export)

-China

- Vietnam

- Taiwan

- Cambodia

- Japan

- Lao Republic

- India

- India
6

Source : ISIT

HR Sheet
consumption (000
(000 MT)
HR
Consumption
MT)
700
600
500
400
300
200
100
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug

Flat Products

2004

Thailand Flat Product Apparent Consumption (million MT)

2005

2006

8.27, 16.5%

Production

7.1, 11%

Import

Export

Consumption

CR Stainless
& CR stainless
consumption (000(000
MT) MT)
CR&CR
Consumption

4.81, -15.8%

300

250

200

150

100

50

1997

1998

1999

2000

Production

2001

Import

2002

2003

Export

2004

2005

2005
JanAug

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug

0
2006
JanAug

2004

Production

Apparent Consumption

2005

Import

Export

2006

Consumption

Coated
consumption (000
MT) MT)
Coated
Consumption
(000
250

Flat Product
Production
Import
Export
Apparent Consumption

2005 Jan-Aug 2006 Jan-Aug %Change

2,788
2,767
-0.7%
3,807
3,020
-20.7%
889
982
10.5%
5,706
4,805
-15.8%

200
150
100
50
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug

Unit : 000 MT

2004

Production

Source : ISIT

2005

Import

Export

2006

Consumption

Hot Rolled Products

HR supply
Producers
Unit : 000 MT
- Sahaviriya Steel Industry
- G Steel

4,418

Production

4,090

3,905
3,328

- NSM
- Sahaviriya Plate Mill
- LPN

2003

2004

2005

2006E

HR Import - export

Import
Export

2,348

2,638

2,354
275

613

1,896
914

946

Major sources
(import)

Main destination
(export)

- Japan

- USA

- China

- Europe

- S.Korea

2003

2004

2005

2006E

- Vietnam
- Indonesia

- Taiwan
8

Source : ISIT

Cold Rolled Products

CR supply

Producers

Unit : 000 MT

- TCRSS
- Siam United Steel

Production
2,115

- Bluescope Steel (Thailand)

2,120

2003

2004

1,595

1,407

2005

2006E

- Thainox Stainless

CR Import - export
Import

644
545

Export

714

655

622
517
375

274

2003
Source : ISIT

2004

2005

2006E

Major sources
(import)

Main destination
(export)

- Japan

- Malaysia

- China

- Vietnam

- S.Korea

- China

- Taiwan

- Hong Kong
9

Coated Products - GI
Producers

GI supply
Unit : 000 MT

- Bangkok Steel Industry

- Thai Coated Steel
- Sangasri Thai

Production

- Thailand Iron Work

443

437

2003

2004

333

310

2005

2006E

GI Import - export

Import
Export

1,018

941

687

593

76
2003
Source : ISIT

- Ratchasima Steel

87
2004

38
2005

69

2006E

Major sources
(import)

Main destination
(export)

-Japan

- Myanmar

- China

- USA

- S.Korea

- Malaysia

- Taiwan

- Lao Republic
10

Coated Products TP&TF

TP&TF supply
Unit : 000 MT

Producers
- Siam tinplate

Production
407

466

2003

2004

- Thai tinplate
360

372

2005

2006E

TP&TF Import - export

Import
Export

138

120

135

112

2003

2004

2005

2006E

Major sources
(import)

Main destination
(export)

- S.Korea

- Lao Republic

- Taiwan

- Indonesia

- Japan

- Cambodia

- China

- Vietnam
11

Source : ISIT

Coated Products Other coated (Zn-Al, color, other metallic coated)

Other coated supply
Producer

Unit : 000 MT

- Bluescope steel (Thailand)

233

Production

148

176

177

2003

2004

2005

2006E

Other coated import - export

Import

248

289

239

Export

148

72

2003
Source : ISIT

42
2004

61

2005

90

2006E

Major sources
(import)

Main destination
(export)

-Japan

- Lao Republic

- China

- Indonesia

- S.Korea

- Cambodia

- Taiwan

- Vietnam
12

Thailand still relies on imports of both semi-finished and finished steel

products, specially for flat steel product group.
Thailand steel Import Export in 2005 (Unit : 000 tonnes)
Export

Import

-1,825

Billet

39

-3,476

Slab

-230
-407
-17

35

Bar

Wire rod

247
577

-1,695
-147
-613
-1,368
-364
-115
Source : ISIT

149
290

Section
HRC
HRP
CRC

105

Coated sheet

36

Seamless pipe

165

Welded pipe

13

Construction is a major consuming sector, most of its application

requires commercial steel grade.
Total consumption in 2005 = 13.88 million tonnes
Consumption per capita in 2005 = 212 kg
Ratio of long : flat steel consumption = 40 : 60
Consumption by downstream sector
- Construction

60%

- Automotive

12%

- Industrial

11%

- Appliance

8%

- Packaging

5%

- Other

4%

Other, 4%
Packaging, 5%

Appliance, 8%

Industrial, 11%
Construction,
60%
Automotive,
12%

14
Source : ISIT

Contents

Thailand steel situation

Specific Energy Consumption
(SEC) in 1999 - 2004

15

Specific Energy Consumption for bar products

BAR with EAF
Raw material :
Scrap
Product : Round
bar/deformed bar

Average
SEC
(MJ/ton
)
5,09
5

BAR without EAF

Raw material :
Billet
Product : Round
bar/deformed bar

Average
SEC
(MJ/ton
)
2,07
5

Ratio (%)
Fuel Elec.
38% 51
oxy %
gen
10
%

Ratio (%)
Elec.
19
%
Fuel
81%
16

Source: team analysis

Specific Energy Consumption for wire rod products

Wire rod with EAF
Raw material :
Scrap
Product : Wire rod

Average
SEC
(MJ/ton
)
6,44
2

Ratio (%)
Fuel
36%
oxy
gen
18
%

Wire rod without

EAF
Raw material :
Billet
Product : Wire rod

Average
SEC
(MJ/ton
3,21
)
2

Elec.
46
%

Ratio (%)
Elec.
33
%
Fuel
67%

17
Source: team analysis

Specific Energy Consumption for hot rolled section

products
Hot rolled section
with EAF
Raw material :
Scrap
Product : Hot rolled
section

Average
SEC
(MJ/ton
)
6,05
1

Hot rolled section

without EAF
Raw material :
Billet
Product : Hot rolled
section

Average
SEC
(MJ/ton
)
2,88
6

Ratio (%)
Elec.
Fuel
40
47% %
oxy
gen
13
%

Ratio (%)
Elec.
11
%
Fuel
89%
18

Source: team analysis

Specific Energy Consumption for hot rolled sheet

products
HR with EAF
Raw material :
Scrap
Product : Hot rolled
coil

Average
SEC
(MJ/ton
)
4,71
0

HR without EAF
Raw material : Slab
Product : Hot rolled
coil / Hot rolled
plate

Average
SEC
(MJ/ton
)
2,24
6

Ratio (%)
Fuel
28% Elec.
58
oxy
%
gen
14
%

Ratio (%)
Elec.
25
%
Fuel
75%
19

Source: team analysis

Specific Energy Consumption for cold rolled sheet

products
CRC
Raw material : Hot
rolled coil
Product : Cold
rolled coil

Average
SEC
(MJ/ton
)
1,78
7

Ratio (%)

Fuel
58%

Elec.
42
%

Specific Energy Consumption for hot dip galvanized

sheet products
HDG
Raw material : Cold
rolled coil
Product : Hot dip
galvanized sheet

Average
SEC
(MJ/ton
)
1,43
9

Ratio (%)
Elec.
18
%
Fuel
82%
20

Source: team analysis

Specific Energy Consumption for electro-galvanized

sheet products
EG
Raw material : Cold
rolled coil
Product : Electrogalvanized sheet

Average
SEC
(MJ/ton
)
1,30
0

Ratio (%)
Fuel
37%

Elec.
63
%

Specific Energy Consumption for tin-plate & tin-free

sheet products
TP&TF
Raw material : Cold
rolled coil - TMBP
Product : Tin plate &
tin free sheet

Average
SEC
(MJ/ton
)
876

Ratio (%)

Fuel
40% Elec.
60
%
21

Source: team analysis

Specific Energy Consumption for cold-formed section

products
Cold formed section
Raw material : Hot
rolled coil
Product : Coldformed section

Average
SEC
(MJ/ton
)
21

Ratio (%)

Elec.
100
%

Specific Energy Consumption for ERW pipe products

ERW pipe
Raw material : HRC,
CRC
Product : ERW pipe

Average
SEC
(MJ/ton
)
235

Ratio (%)

Elec.
100
%
22

Source: team analysis

Specific Energy Consumption for galvanized steel pipe

products
HDG pipe
Raw material : Hot
rolled coil
Product : Hot dip
galvanized steel pipe

Average
SEC
(MJ/ton
)
1,67
0

Ratio (%)
Elec.
28
%

Fuel
72%

23
Source: team analysis

Thailand specific energy consumption in 1999 2004

MJ/ton

3,500

2,900

2,869

3,000

2,512

2,553

2,487

2001

2002

3,014

2,500

2,000

1,500

1,000

500

0
1999

2000

2004

2004

24
Source: team analysis

Total energy equivalent demand for Thai steel industry

is estimated Est.
939
ktoe.
Energy
total
Bar_EAF
EAF
Hot
rolling
mill

WR_EAF

550

Section_EAF

600

HR_EAF

WR_no EAF

consumption
(ktoe)

5,095

195
6,442

85

6,051

87

4,710

1,607

Bar_no EAF
Hot
rolling
mill

SEC (MJ/ton)

production in
2004 (000
1,600
tons)

1,350

181
67

2,075
3,212

570

Section_no EAF 430

44

2,886

HR_no EAF

2,300

CRC

2,100

2,246

30

123
90

1,787

HDG

260

1439

EG

180

1,300

Tin plate

467

876

10

Cold-formed

450

21

0.22

ERW pipe
Gal. steel pipe
Source: team analysis

810
252

235

1,670

10

25

Energy consumption for Thai steel industry

Steel sectors

Est. total
Energy
production in
consumption
2004 ('000
(ktoe)
tons)

Production
ratio (%)

Energy
consumption
ratio (%)

1 Bar_EAF

1,600

195

12%

21%

2 Bar_no EAF

1,350

67

10%

7%

3 Wire rod_EAF

550

85

4%

9%

4 Wire rod_no EAF

570

44

4%

5%

5 Hot rolled section_EAF

600

87

4%

9%

6 Hot rolled section_no EAF

430

30

3%

3%

7 HR_EAF

1,607

181

12%

19%

8 HR_no EAF

2,300

123

17%

13%

9 Cold rolled steel sheet

2,100

90

16%

10%

10 Hot dip galvanized

260

2%

1%

11 Electro-galvanized

180

1%

1%

12 Tin plate & tin free steel

467

10

3%

1%

13 Cold formed section

450

0.22

3%

0.02%

14 ERW pipe

810

6%

0.48%

15 Hot dip galvanized steel pipe

252

10

2%

1%

13,526

939

100%

100%

Total

26

Conversion factor
MJ

Unit
Electricity

kWh

3.6

NM3
(kWh/NM3) x 3.6 (MJ/kWh)]
Oxygen

18.72 [ = 5.2

(EAF)*

Natural gas

MMBTU

1,055.87

LPG

kg

50.23

Bunker oil

litre

39.77

Diesel

litre

36.42

Remark:
Kerosene
litre oxygen is one source34.53
In steelmaking process,
of energy to melt steel
scrap. Chemical reaction between oxygen and carbon evolves heat as
exothermic reaction.

27