TATA STEEL THAILAND,a unit of India's Tata Steel Group,said yesterday that it expected to post a net loss for the fiscal year ending march 2015,hit by falling steel prices and weak demand.
But improved domestic demand and better outlook for steel prices should help it flip to a profit in the next fiscal year,president and chief executive Rajiw Mangal told reporters.
Thailand's domestic steel demand is expected to rise at least 5 percent,to about 18.5 million tonnes,in 2015 on the back of an improving economic outlook,while steel prices have bottomed out and should gradually increase,he said.
"outlook for 2015 should be better than this year,given the country's GDP is forecast to grow 3.5 percent,which should help boost domestic demand for steel,"Mangal said.
Tata Steel also plans to focus on value-added products and boost their sales to between 40 and 50 percent of the total over the next two years from 20 percent now, he said.
Hit by oversupply both at home and overseas, Thai steelmakers also faced an increase in imports of wire rods from China on expectation of the removal of an export incentive. That led to a build-up of around two to three months in the inventory of wire rods,the company said in a statement.
As the increase in steel import continued to put pressure on domestic prices, Tata Steel planned to ask the Thai Commerce Ministry to take anti-dumping measures to tax imported high-cartoon steel rod from Chinese makers,Mangal said.
TATA STEEL THAILAND,a unit of India's Tata Steel Group,said yesterday that it expected to post a net loss for the fiscal year ending march 2015,hit by falling steel prices and weak demand.But improved domestic demand and better outlook for steel prices should help it flip to a profit in the next fiscal year,president and chief executive Rajiw Mangal told reporters.Thailand's domestic steel demand is expected to rise at least 5 percent,to about 18.5 million tonnes,in 2015 on the back of an improving economic outlook,while steel prices have bottomed out and should gradually increase,he said."outlook for 2015 should be better than this year,given the country's GDP is forecast to grow 3.5 percent,which should help boost domestic demand for steel,"Mangal said.Tata Steel also plans to focus on value-added products and boost their sales to between 40 and 50 percent of the total over the next two years from 20 percent now, he said.Hit by oversupply both at home and overseas, Thai steelmakers also faced an increase in imports of wire rods from China on expectation of the removal of an export incentive. That led to a build-up of around two to three months in the inventory of wire rods,the company said in a statement.As the increase in steel import continued to put pressure on domestic prices, Tata Steel planned to ask the Thai Commerce Ministry to take anti-dumping measures to tax imported high-cartoon steel rod from Chinese makers,Mangal said.
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