Thailand considers an anti-dumping investigation of steel imported from China

Recently, the Thai Ministry of Commerce conducted an investigation and considered implementing anti-dumping measures on hot-rolled coils imported from China.

For more information about the incident, follow the article below with Steel Journey.

Hot-rolled coils are under anti-dumping investigation by China

Competitiveness comes from cheap imported steel

Specifically, Chinese steel flooded into Thailand, causing difficulties for domestic steel factories because of excess capacity and low efficiency. This is causing the Thailand steel industry to face many challenges and risks affecting the economy. In this context, expanding the anti-dumping investigation could help protect the Thailand steel industry from the negative impact of steel imported from China.

Currently, China accounts for half of world steel production and exports one-third of steel to Southeast Asia. One of China’s major export markets is Thailand, so by 2023 Thailand’s total steel imports will increase by 63%. This forces Thailand to take measures to deter unfair practices in international trade. To avoid anti-dumping measures, some Chinese companies have mixed other alloys into steel products, causing difficulties in product quality control for Thailand steel manufacturers. Faced with the above situation, the Thai Department of Foreign Trade conducted an anti-dumping investigation on hot-rolled coils imported from China. This investigation may end in June this year, after the Thai Department of Foreign Trade received an investigation request from Sahaviriya Steel, G Steel, and GJ Steel, which are Thailand’s largest hot-rolled coil producers.

Thailand wants to apply new anti-dumping measures on Chinese steel

Challenges for domestic manufacturers

Currently, Chinese steel is becoming the top choice of consumers, thanks to its abundant supply and cheaper prices than domestic steel products. In 2023, the price of imported coated steel from China is 39% lower than that of Thai products, and Chinese steel coils are sold at a 16% discount. This situation is putting Thailand steel manufacturing enterprises in a difficult situation, forcing businesses to find ways to improve performance and competitiveness to cope with competition from Chinese steel. In addition, careful consideration is needed in shaping strategy and cooperation to ensure sustainability for the Thailand steel industry in the context of increasingly fierce international competition today.

Previously, in 2017, Thailand applied anti-dumping measures on a series of imported steel products. This has been a reminder for Thailand steelmakers to focus on improving product quality and expanding distribution channels to avoid competing solely on price. Otherwise, they will fall into a losing position against competition from cheap imported steel products, despite protective measures from the government.

However, during a hearing, steel importers from China in Thailand opposed the proposed anti-dumping investigation on steel products from China. They explain that the Thailand steel industry’s weakness in competitiveness does not come from protection measures but from improper investment decisions.

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