China’s continued surge in steel exports is putting growing pressure on Thai steelmakers, according to Tata Steel (Thailand), a subsidiary of India’s largest steel producer.
In the first half of this year, China exported 58.2 million tonnes of steel, marking a 9.2% increase from the same period last year. Asia remained the largest recipient of these exports, with Thailand among the countries significantly affected.
Tata Steel (Thailand) President and CEO Tarun Kumar Daga noted a sharp rise in Chinese wire rod steel imports to Thailand. In the first six months of 2025, these imports rose 57% year-on-year to 535,000 tonnes out of 781,000 tonnes of wire rod steel imported into the country.
Wire rod steel, a key raw material for the construction and automotive sectors, is seeing mounting competition from cheaper Chinese supply, making it difficult for local producers to compete.
China’s global steel exports have steadily grown over the past five years—from 53.7 million tonnes in 2020 to a staggering 117 million tonnes in 2024.
The Federation of Thai Industries (FTI) has repeatedly urged the government to take steps to manage the domestic steel supply, warning that a surplus could hurt the sector.
Steel demand in Thailand is expected to remain steady at around 16 million tonnes this year, supported by government and private sector infrastructure investments, according to FTI.
Adding to the uncertainty is the policy shift by US President Donald Trump, who recently increased tariffs on steel and aluminium imports from 25% to 50%. While Thailand does not directly export steel to the US, the knock-on effects of trade shifts have raised concerns.
“We’re not directly affected by the US steel tariff since we don’t export there, but we must closely monitor future trade policy shifts,” said Daga.
Tata Steel (Thailand) said that the company has largely avoided disruption from the Thai-Cambodian border clashes, having reduced exports to Cambodia over the past 18 months.
For its fiscal first quarter (April to June 2025), the company reported a 9.3% year-on-year increase in total sales to 338,000 tonnes, reported Bangkok Post.
Domestic sales rose 12.6%, while exports dipped 5.45% to 52,000 tonnes. Revenue was flat at 6.83 billion baht, but profit soared by 410% to 474 million baht, thanks to ongoing cost reductions.
The story Chinese steel surge pressures Thai manufacturers as seen on Thaiger News.
