SSI revealed that in 2021, globally usage of steel was 1,855.4 million tones, or 4.5% growth and it is expected that in 2022, growth rate will increase by 2.2%. China was still the country with highest consumption of steel at 989.1 million tons. While steel demand of Thailand in 2021 was 18.64 million tons, or increased by 12.8%. The import amount of steel products rose but the domestic production capacity was still low. It is expected that in 2022, steel used in Thailand will be 19.6 million tons, an increase by 5% owing to the expansion of the continuous industries. Russia-Ukraine war made steel demand lost and it resulted higher prices of steel worldwide. The government is urged to accelerate Steel 4.0 Plan to build sustainability to steel industry and national economies. In 2021, SSI sold 1.2 million tons of hot rolled steel sheets in coil, increased by 19%. Target of sales volume in 2022 is set at 1.39 million tons or an increase by 15% and many products will be developed to respond to demands of all customer groups continually.
Mr. Nava Chantanasurakon, President of Sahaviriya Steel Industries PLC or SSI revealed about outlook of steel industry in 2021 that the global demand of steel products increased from the amount of 1,775.4 million tons in 2020 to 1,855.4 million tomes or increased by approximately 4.5%. It is anticipated that in 2022, the steel consumption will increase to 1,896.4 million tons or an increase by 2.2%. China will still be the country with the highest consumption of steel at 985.1 million tons, which is closed to the amount in 2021.
For outlook of steel industries in Thailand, in 2021, demand of steel products in Thailand was 18.64 million tons, increased by 12.8% from 2020. Imported steel products expanded up to 19.1%, while domestic steel production increased only 5.6% and production capacity rate of steel plants in Thailand was also in the very low level at 32.5%. Nonetheless, in 2022, the Office of Industrial Economics or OIE forecasted that the consumption demand will increase to 19.6 million tons or 5% from 2021 with supporting factors are from expansion of continuous industries, such as construction industries, particularly, the infrastructure projects of the public sectors and the promotion of domestic industries.
The President of SSI said that the controversies between Russia and Ukraine certainly impacted global steel industries and Thai steel industries because total export amount of steel products of Russia and Ukraine globally was approximately 58 million tons accounting for ratio of 8% and 4% of total steel export amount worldwide. Hence, if the conflict situations prolong, the supply of steel products of this part will be lost or shortage that it will make prices of steel products in the world markets increase and it also impacts energy prices which are the major costs of production and logistics.
Mr. Nava added that in order to develop Thai steel industries on sustainable basis, the public sectors should accelerate the operations pursuant to the Steel Industrial Development Plan 4.0 which is the plan that the steel industrial groups, the Federation of Thai Industries and 7 associations of Thai Steel Industries with the Iron and Steel Institute of Thailand as the consultant had submitted to the Ministry of Industry. This plan has also been presented to the working group to study on guidelines on sustainable development of Thai steel industries in 2021 including the emergency plan which should be urgently performed, such as control of establishment of some steel products production plants which currently have overcapacity and low utilization, the same way that the government controlled and prohibited on establishment and on expansion of the plants manufacturing reinforced steel bars or billets for reinforced steel bars. It should also be expanded on promotion on usage of steel products manufactured within the country in the Public-Private Partnership (PPP) projects apart from the public procurement because PPP projects have very high investment. For PPP projects in 2020-2027, there are 110 projects wishing to join the investment with total investment amount of approximately 1.12 trillion Baht. If it is encouraged to use domestic products in these projects, it can build enormous domestic economic value.
Mr. Nava also mentioned about business operations of Sahaviriya Steel Industries PLC or SSI that in 2021, sale volume of hot rolled steel sheet in coils was 1.2 million tons, increased by 19% from 2020 which was higher than domestic demand of steel products which increased by 12.8%. Such sale volume increased in almost market groups. However, in 2022, SSI sets target of sale volume at 1.39 million tons, or increase by 15% when compared with 2021. For product development, SSI has improved and developed them continually to respond to demand of all group of customers. In 2021-2023, the Company has more than 20 product development projects, such as steel for high strength structural pipe project, weathering steel project, and high tensile strength steel to support tendency of automobile industries which need light weight steel with higher strength.