Japanese Steel Export to Thailand Expected to Increase

Japanese steel export to Thailand is expected to increase in future. Mr. Virasakdi Futrakul, Thai ambassador to Japan, explained at a press conference in Tokyo on September 1 that car production in Thailand is forecasted to reach 2.3 million units in 2014 and Thailand is expected to enter global top ten countries of car production. He estimated the production at 1.56 million units in 2010 and the country is 13th largest car producer in the world. Japanese automakers including Toyota Motor account for 90% or more in Thai all car production. Thus car production increase directly affects Japanese steel consumption growth. Thailand is the third largest importer of Japanese steel products at present.

Thai car production hit peak at 1.39 million units in 2008, which dropped to 960,000 units in 2009 while rapidly recovers in 2010. Japanese automakers’ eco friendly car production totaled 730,000 units for March-August 2010, which is encouraged by Thai government. In the country, Nissan Motor started eco car production in March 2010 and Toyota, Honda Motor, Suzuki Motor and Mitsubishi Motors followed. The 5 makers are especially increasing export.

Thailand becomes a component supply base by FTA conclusion in ASEAN region and with China and India. The country is near emerging regions including India and Middle East. Automakers, those who entered Thai market in 1960s, now regard Thailand as an exporting base to growing offshore markets.

Japanese steel export to Thailand hit peak at 4.39 million tonnes in 2007 and lowered to 3.72 million tonnes in 2009. In 2007, Thailand represented 11% in Japanese all steel export and became the third largest importer next to South Korea and China. The export involves much volume of high grade steels applied to automobiles and home appliances. The more Japanese manufacturers increase Thai productions, the more Japanese steel demand grows.