A STRUGGLE between Thailand and China for domination of stainless
steel exports to Myanmar is seeing China take an increasing share
of the market, say traders at Yangon’s South Dagon township,
the city’s largest stainless steel wholesale centre.
Several years ago household fashions turned to the increasing
use of stainless steel in fencing, balconies and railing, which
saw imports of stainless steel bars from Thailand and China soar
to meet demand.
But as the new year rolled over, the slowing construction industry
and a slight overall reduction in consumer demand high-lighted
the competitive nature of steel imports.
With a lower price and fewer imports from Thailand in the last
two months, Chinese stainless steel appears to grabbing a larger
share of the market despite Thai steel being of higher quality,
market sources say.
“Thai steel is more expensive than that of China,”
Golden Crown Stainless Steel & Home Decoration Centre owner
Ma Thida said. “One foot of Thailand-made stainless steel
is K20,000, whereas Chinese steel is only K10,000.”
China-made steel was also gaining ground through the scale of
its imports and was becoming more heavily stocked by traders than
its Thai counterpart, dealers said. This was leading to a cycle
where Thai imports were reduced to meet its declining market share,
reinforcing the dominance of Chinese brands.
“Sales of Thai-made steel fell about 10 per cent at the
end of December because there was more steel arriving from China,”
Soe Myint and Sons Stainless Steel Trading and Decoration Centre
manager U Than Aung said.
For fencing, one foot of steel pipe from China is K9000 but from
Thailand it is K16,000,” he added.
The Chinese product’s lower price made it popular with
larger construction projects, while people who could afford it
tended to prefer Thai steel because of its longer lasting colour
and higher quality composition, Uni-Win Stainless Steel World
managing director U Win said. His own shop had seen sales rise
by 20 per cent from the start of the year, which he attributed
to demand from the Shwe Than Lwin and Ginza Hla constructions.
Prices for stainless steel had risen slightly since December
due to fewer supplies from Thailand, traders said.
