Country Report for Thailand

Report
Thailand’s Country Report
2011 SEAISI Environmental and Safety Seminar
November 2011
By
Dr. Decha Pimpisut
Director, Air Pollution Division
Bureau of Industrial Water and Environmental Technology
1
Presentation Topics
1. Overview of Thailand’s Iron and Steel Industry
2. Factors that may impact on the industries on their
environmental decision-making or performance
3. Special Topics
4. Conclusions
2
1. Overview of Thailand’s Iron and
Steel Industry

World steel demand is projected to be 1.4 billion tons
in 2011, rise by 6% from 2010

Thailand steel demand is expected to go to 20.0
million tons in 2015, the highest rate among ASEAN
countries of total 73 million tonnes in the same year
3
World steel output registered 1.4 billion tonnes in 2010
Crude steel production (Million tonnes)
CIS
113.2
124.2
114.3
98.5
Europe
North America
135.4
127.6
132.6
240
212
97.5
108.4
230
206
180
168
124.5
111.8
83.4
Asia
Middle East16.5
15.3
South America
45.3
48.2
39.1
771.0
8.8
8.4
788.3
598.1
17.0
331.9
10.8
47.4
19.0
16.6
881.2
761.9
43.8
37.8
Ocenia
8.6
7.8
World
1,146.7
1,351.3
1,329.1
1,413.6
8.1
6.0
1,211.5
847.7
Source: World Steel Association
4
Thailand, Vietnam and Indonesia drive demand in region
with more than 10% growth rate
ASEAN steel demand projection and growth rate (‘000 Tonnes)
Steel demand in 2015
Average demand growth rate during 2009 – 2015 (%)
5
Source: ISIT analysis
Thailand steel market has been expanded at 7.6% on average a year
Steel demand (‘000 tonnes)
16,000
13,876
12,661
12,000
10,967
14,012
13,581
14,000
12,716
12,154
10,758
10,049
10,000
8,031
7,607
8,000
6,762
5,960
6,000
3,837
4,000
2,000
0
Production
Import
Export
Apparent Use
6
Source: ISIT Analysis
Steel consumption in 2011 is expected to slightly increase
Thailand Steel Demand (‘000 Tonnes)
7
Source : ISIT analysis
Construction is major steel consuming sector
 Demand per capita = 204 Kg.
Industrial
13.1%
 Ratio Long product : Flat product = 40 : 60
 Demand breakdown
- Construction
54%
- Automotive
16%
- Machinery & Industrial
13%
- Appliance
12%
- Packaging
5%
Source: ISIT analysis
Appliance
12.3%
Auto
15.8%
Packaging
4.9%
Others
0.3%
Construction
53.6%
8
Steel and
Iron
Processes
in
Thailand
9
Steel and Iron Processes in Thailand
1. EAF using scrap as main raw materials to produce liquid steel.
2. Casting to produce Billet, Bloom and Thin Slab.
3. Downstream processes
- Flat shape i.e. Hot Rolled Steel, Cold Rolled Steel & Coated Sheet
etc.
- Long shape i.e. Structural Steel, Bar, Wire Rod & wire etc.
4. One of Mini-blast furnace (without coke making) is reprocess and
resubmitted EHIA to Office of Natural Resources and Environmental
Policy and Planning (ONEP).
10
Key Environmental Opportunities to
Improve Industry’s Performance

Managing and Minimize Waste

Reducing Air Emission

Increasing Energy Efficiency

Promoting Environmental Management System (EMS)
11
2. Factors that may impact on the
industries on their environmental decisionmaking or performance
2.1 External Influence
2.2 In the Steelworks
12
2.1 External Influence

a. Regional

(1) Influence of the Ratification of “Kyoto Protocol”
Since the Kyoto protocol effective on 16 February 2005. CO2
emitted from using of fuel is the key issue and the iron & steel plants
are considered as an energy intensive sector.
Manufacturer may face the pressure from public to use energy
more efficient to reduce effect on climate change.
But The period of Kyoto Protocol will be valid in 2012 that not
clear how to do in this way.
13
2.1 External Influence (Cont.)

(2) Free Trade Agreement (FTA) in Asia7.
There are several initiatives in Asia dealing with FTA.
The FTA may effect the iron & steel industry in terms of lower cost of
raw materials for importers but, on the other hand, manufacturers
might have to improve their productivity and introduce new
technology for cost effective in production processes to maintain
their competitiveness.
14
2.1 External Influence (Cont.)

(3) China’s Policy on exporting raw materials for steel making and
intermediate steel products
China has set policy on exporting raw materials for steel making and
intermediate steel products, which affected on supply side of intermediate
steel products. China also support high quality steel products and drive
merging of existing factories in order to make more effective on steel
producing. The policy also limit coal and water consumption not more than
0.73 ton and 8 ton per ton of product within 2010 and 0.7 ton and 6 ton per
ton of product within 2020 respectively.
15
2.1 External Influence (Cont.)

(4)Thailand Steelmaker take aim at China’s alloy steel exports
The Thai Steel industry is being adversely affected by rising
imports of alloy-added hot rolled steel products from China. These
imports are unfair for the Thai steel mills because these alloy added
products are being used in same applications are mild steel product
with zero import-duty (normal 5% duty).
Thailand Industrial Standards Substitution has been alerted to
problem by conducting more inspection.
16
2.1 External Influence (Cont.)

(5) ASEAN Economic community :AEC
The ASEAN Economic Community (AEC) shall be the goal of regional
economic integration by 2015. AEC envisages the following key characteristics:
(a) a single market and production base,
(b) a highly competitive economic region,
(c) a region of equitable economic development, and
(d) a region fully integrated into the global economy.
Therefore, Iron &Steel companies should improve feasibility of own about
production process, product, human before 2015.
17
2.1 External Influence (Cont.)

b. National
b1. Policy and Legislation
(1) Ministry of Industry issued a new Notification on Industrial Solid
Waste Management8
(2) Ministry of Industry has the investment policy to promote the
establishment of upstream processes for Iron & Steel Industry
b2. Guidelines/codes of practice
Iron & Steel Institute of Thailand (ISIT) has conduct Safety Guideline
for Thailand Steel mill
b3. Pollution Reduction measures and programs
(1) Trend in Waste Management and Recycling Regulations
(2) Promotion of Eco-Industrial Parks (ISIT conduct Eco-Town
Study For Steel Industry.)
(3) Promotion of Sustainable Development for Thai Industry 18
2.1 External Influence (Cont.)

c. Public, NGOs and Pressure groups
Thailand’s Constitution B.E 2550 (2007) Clause 67 paragraph 2 under
human rights subject requires all projects that might cause major harmful to
communities in term of natural resources, environment and health to
a) make comprehensive study of EIA, HIA and EHIA
b) have public participation
c) have independent organization on health and environment review before
permitting.
This subject might cause more active involve in any development in Thailand
especially major industry projects.
19
2.1 External Influence (Cont.)

d. Surveys, Studies and forecasts.
(1) Pollution Control Department developed an Emission Inventory of
PCDDs/PCDFs for Enabling Activities of a National Plan for Implementation of the
Stockholm Convention on POPs in Thailand.
(2) Iron and Steel Institute of Thailand studied energy used in Thai’s
steel industry4 and recheck the pollution emission report for know the situation.
(3) Office of Industrial Economics studied Benchmarking for
Competitiveness of Thai Industry
20
2.2 In the Steelworks

a. Overview
a1) More Attention on Social Responsibility of Industry
a2) Efforts on the Pollution Prevention
The sustainable development is more emphasize after the
Johannesburg Implementation Plan based on Agenda 21. Pollution
prevention scheme is widely accepted. The common tools are Cleaner
Technology, LCI/LCA, and etc.
21
2.2 In the Steelworks

b. Process stages
not only reducing environmental impact and monitoring but
also integrating cleaner technology concept in to the Environmental
Management system (EMS) –ISO 14001 of the plant
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3 Special Topics

R & D activities
1. Recycling Technologies for EAF dust
- Thailand has 72,000-90,000 tons EAF dust (red dust) are
generated per year according to ~5 million tons steel production
(survey (2010): from 14 steel mills)
- Iron & Steel Institute of Thailand (ISIT) are also being
study about the suitable technology to recycle EAF dust
23
3 Special Topics (Cont.)
- Considerations for Recycling Technology Suit Thailand as
follows;
- Financial investment,
- Operation cost/Consumptions,
- EAF dust volume in Thailand,
- Environmental impact /Energy saving,
- Products quality, Reliability of the process
24
3 Special Topics (Cont.)
2. Slag to fertilizer
Application of iron and steel slag to use in agricultural products
has been studied by ISIT. Since considered amounts of silicon in slags
found to be useful as plant nutrients, the slags appear to be a promising
and extensive source of silicon using as fertilizer.
25
3 Special Topics (Cont.)

New Development
One Iron and Steel company, in Chonburi, changed the old arc
furnace to Shaft furnace Technology that supported by NEDO,
Japan, for reducing the electrical power consumption and
hazardous waste handing costs.
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4. Conclusion


China’s Policy on merging iron & steel plants and exporting raw
materials for steel making and intermediate steel products
Upstream Processes in Thailand
Upstream Processes for Iron & Steel Industry are also being promoted
by Thai government in order to recruit high quality steel support target
industries i.e. auto industry, appliance, electrical and electronic industry.
But Now, Upstream process in Thailand may not possible in Thailand
because the people don’t widely understand why it’s important to do in
Thailand. Therefore, It should increased the information to stakeholder.
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4. Conclusion (Cont.)

Notification on Industrial Pollution Management (Air, water and waste)
might be more stringent i.e. GPS system for waste’s transporter,
revision of emission standard, recycling society.

Corporate Social Responsibility (CSR: ISO 26000) and efforts on the
Pollution Prevention (EMS: ISO 14000) are being promoted among
Thai Industry

Sustainable Development for Thai Industry is a crucial topic and give a
big gap for improvement.
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Q&A
Thanks for
Your Attention
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