Thailand’s steel industry has faced sluggish sales in the first five months of this year, attributed to reduced construction spending and competition from low-cost Chinese imports, according to Tata Steel (Thailand) Plc (TSTH).
“Long steel product consumption dropped by 8.7pct YoY to 2.47 mln tons,” said TSTH President and CEO Tarun Kuma Daga. Overall steel consumption also fell by 6.9pct from January to May. TSTH projects steel consumption in 2024 to remain steady at 16.3 mln tons, similar to last year, due to delays in the government’s fiscal 2024 budget and a slowdown in construction.
The House of Representatives approved the budget plan in March, which is expected to boost government spending on construction and infrastructure in the third quarter of 2024. However, TSTH faces challenges from increased competition due to the influx of low-cost Chinese steel into ASEAN markets.
China’s steel exports to ASEAN countries, including Thailand, rose by 20.3pct YoY to 45.5 mln tons in the first five months of the year. Thailand saw a 10pct YoY increase in wire rod steel imports from China, totaling 566,000 tons from January to May. In 2023, Thailand’s wire rod steel imports from China rose by 9pct to 1.22 mln tons.