Posted on 12 Feb 2025
The Thai steel industry has lost more than 10 billion baht in revenue over the past 10 years, attributed mainly to an economic slowdown and the influx of cheap Chinese steel products into the Thai market, according to local steel manufacturers.
The decline in revenue was accompanied by a significant decrease in capacity utilisation in domestic steel manufacturing to below 30%.
If the situation escalates, many local steel factories may shut down or some may sell their factory licences to Chinese steelmakers to maintain employment, though this is illegal and raises concerns over production standards under new employers, according to the local steel manufacturers.
Thailand is currently the world’s fifth largest steel importing country, purchasing over 10 million tonnes of steel from China per year compared to six million tonnes per year produced domestically.
In 2024, the total steel consumption in Thailand stood between 15 and 16 million tonnes. The amount should not be much different this year, as it is projected to reach 16 million tonnes, driven by construction projects in the state and private sectors.
Source:BusinessToday
