Overview of Steel Industry in Thailand
Mr. Hin Navawongse Iron and Steel Institute of Thailand November 2006
0
Contents
Thailand steel situation Specific Energy Consumption (SEC) in 1999 - 2004
1
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
2
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%
6
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
0
5
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
4
6
7
7
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%
9
Production
7.1, 11%
8
Import
Export
Consumption
7
CR Stainless & CR stainless consumption (000(000 MT) MT) CR&CR Consumption
4.81, -15.8%
6
300
5
250
4
200
3
150
2
100
1
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
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
7
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
5
7
6
8
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
7
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
X
2,246
30
=
123 90
1,787
HDG
260
1439
9
EG
180
1,300
6
Tin plate
467
876
10
Cold-formed
450
21
0.22
ERW pipe Gal. steel pipe Source: team analysis
810 252
235
5
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
9
2%
1%
11 Electro-galvanized
180
6
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
5
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
