By Wirote Rotewatanachai President Iron and Steel Institute of - PowerPoint PPT Presentation

By Wirote Rotewatanachai President Iron and Steel Institute of Thailand

Content  Thailand Steel consumption  Construction sector in Thailand

Thailand apparent steel demand In 2018, Apparent steel demand increased to 19.37 Mt by 1.5% from 2017. Source: Iron and Steel Institute of Thailand

Steel Demand by Domestic Steel Using Sector • In 2018 Thailand the construction is majority of consuming sector in Thailand its about 5 9 % of total steel demand. Demand Breakdown in 2018 4

Content  Thailand Steel consumption  Construction sector in Thailand

Overview Construction Investment  During the year 2009-2018, the value of construction investment was 8.1% of gross domestic product (GDP).  The construction business is worth 1,264.44 billion baht, reversing the growth of 4.3% YoY from a 0.9% contraction in 2017. Ratio of Construction Investment to GDP Construction Investment in Thailand Sourec : Krunsri research & NESDC

Construction Sector In Thailand • Construction Sector investment in Thailand • Public Construction Investment. • Private Construction Investment. • The proportion of accumulated investment value Public : Private = 53:47 Public and Private Construction Investment (at current prices) Sourec : Krunsri research & NESDC

Investment proportion of Public and private construction Type % of Investment Infrastructure 80% Total Public Investment 100% Other (Government building & 20% accommodation of government officials) Residence 56% Factory 10% Total Private Investment 100% Commerce 10% Other (Hotels and hospitals) 24% Sourec : Krunsri research & NESDC

Key player of Construction sector Sourec : Krunsri research

The Progress of Mega Projects Investment

The plan of Mega Projects Investment in 2019

The plan of EEC Projects Investment in 2019

Investment in EEC in Q1 2019 The first half of the year 2019, 7.4 billion baht combine 251 factories to invest and expand investment in EEC. Investment estment in EE EEC Q2/2019 2019 2. Factory ory Expand and 58 Factories • • 3.65 billion baht Employment of • 7,274 people. 1. New Ope peration tion 193 Factories • 3.74 billion baht • Employment of • 8,957 people.

The Construction Investment Trend It is expected that the total construction investment in 2019, 2020 and 2021 will grow 3.5-5.0%, 5-7% and 7.5-9.5% YoY, respectively, resulting from the acceleration of large-scale government and investment projects. Private construction is expected to continue to grow as confidence increases. Sourec : Krunsri research Forecast the steel for construction 2019 (f) 2020 (f) 2021 (f) Steel for Public Construction (tonne) 5,126,700 5,485,500 6,030,600 Steel for Private Construction (tonne) 4,036,500 4,319,400 4,705,800 Total Steel for construction (tonne) 9,163,200 9,804,900 10,736,400 Remank : Assuming the steel's price equal to 20,000 THB

Assessment of Construction Cost Forecast the steel for construction 2019 (f) 2020 (f) 2021 (f) Steel for Public Construction (tonne) 5,126,700 5,485,500 6,030,600 Steel for Private Construction (tonne) 4,036,500 4,319,400 4,705,800 Total Steel for construction (tonne) 9,163,200 9,804,900 10,736,400 Remank : Assuming the steel's price equal to 20,000 THB Source NESDC and MOC, complied by Krungsri Research

The Opportunity in CLMV Project That contractors will be able to invest over the next 3-5 years in CLMV

The Investment project in CLMV

The Investment project in CLMV