Steel industry - remarkable growth

The steel industry is an industry that is important to the development of the country's economy. Because it is necessary for production infrastructure development including in the downstream sectors such as electrical appliances, automobiles, bridges, highways, construction, energy, packaging, utility transmission towers. Therefore, the steel industry is attractive in terms of growth and investment.

Go back to 2020 due to the Covid-19 virus outbreak, causing economic expansion to slow down. together with the problems in the transportation sector causing demand for steel consumption to halt global crude steel production fell 0.9% to 1,864 million tons (Source: World Steel Association).

Later in 2021, after various easing measures were introduced, more economic activities could be undertaken. The manufacturing sector of the industry has a gradual recovery in trend and direction. This caused the demand for finished steel products to improve as well. World steel consumption is growing at 4.5%. In 2022, the World Steel Association estimates that global steel demand will be around 1,896 million tonnes, mainly driven by the global economic recovery and rising investment in infrastructure

For the world steel product prices, it was found that the end of 2021 to the beginning of 2022 decreased the heat. This is because most of the steel mills around the world have returned to production in almost normal quantities. In January 2022, the price of long steel products and flat steel products dropped to 756 - 762 USD per ton, or 18 - 24% from the highest price that had been raised in the middle of 2021.

However, it is unlikely that steel prices will continue to fall to the level of 2020 as steel prices in China and Asia will stabilize. And the opportunity to increase in the future China has adjusted its policy on the cancellation of export taxes (Rebate VAT) on steel products, including  an environmental policy. As a result, there is an additional cost in the production process. This includes the situation of energy costs and various raw materials such as coal, which tends to increase prices (Source: Federation of Thai Industries)


Sample of a large steel companies in the world



TimkenSteel Corp.



Manufacturer and distributor of steel and components including rebar, bearings, seals, pipes and chains. Its major customers are in the oil and gas, industrial, mining, construction and power generation industries

Commercial Metals


Manufacturer, recycling and steel products and metal and other steel-related materials. It has main customers in the United States, Poland and China. It also manufactures and sells finished long rebar products. as well as semi-finished steel billets and also provide steel products used to reinforce concrete in the construction of large projects and also sell rebar for trailer industry and military vehicles

United States Steel


Mainly produces and sells rolled steel products and round tubes in North America and Europe

Ternium S.A.


Manufacture, proceed and sell various steel products to children in Mexico, Argentina, Paraguay, Chile, Bolivia, Uruguay, Brazil, USA, Colombia, Guatemala, Costa Rica, Honduras, El Salvador and Nicaragua

Companhia Siderurgica Nacional


Steel maker flat steel products Hot-rolled steel sheet, coil, galvanized, with main customers in Brazil such as construction industry, railways, ports


For the stocks investment on steel industry, people choose to invest from 3 strategies as follows:

1.Value Stock


 focuses on investing in stocks with strong fundamentals, stable business. Stock prices are cheaper than their real value. It's important to look at financial ratios such as the Market Price to Book Value Ratio (P/BV Ratio), Price to Earnings Ratio (P/E Ratio), Return on Equity Ratio (ROE), or Debt to Equity Ratio. (D/E Ratio), etc.

2.Growth Stock


focuses on business with good growth prospects such as continuous business expansion. There are new business policies, so the business will grow rapidly and profitably for many years. The growth will come from the increase of the core business or grow from mergers and acquisitions which when investing, then focusing on the return from the share price difference (Capital gain)


3.Momentum Stock

focuses on stocks with high trading volume and invests according to the uptrend of the market, for example, when you see investments flowing in, they invest as well. Therefore, stock analysis focuses on net purchases including fundamental information as well.

From the global economic recovery trend, this caused the demand for steel to increase accordingly. Steel stocks are therefore gaining popularity as well. However, before making an investment decision, you should study information such as tracking steel prices, production capacity, changes in government policy. including the world situation that may affect the steel business. This will affect the price of steel stocks as well.