9,347.17 TL BIST 100 BIST 100
31.01 $ USD USD
€33.67 EUR EUR
43.42 TL Interest Interest
83.25 $ Fossil Oil Fossil Oil
22.62 $ Silver Silver
3.88 $ Copper Copper
121.11 $ Iron Ore Iron Ore
394.00 $ Ship Dismantling Ship Dismantling
2,023.50 TL Gold (gr) Gold (gr)

Thai steel market stays stagnant

The Thai steel market is facing a stagnation period in 2023, the consumption levels are predicted to match those of last year at 16 million tonnes

Thai steel market stays stagnant

The Thai steel market faces a period of recession in 2023, with consumption levels estimated to only reach last year's level of 16 million tonnes. If the predictions and expectations come true, the recession will inevitably continue due to the lack of increase in consumption.

The forecasts and predictions previously shared by EAF Long Product Steel Producers Association President Chaichalerm Bunyanuwat drew attention to several reasons for a stagnant course in this direction. The main factors are the very slow resumption of major state-owned infrastructure projects and high debt levels with consumers weakened by weak purchasing power.

Moreover, according to Chaichalerm Bunyanuwat, it is not yet possible to expect a change since we have not yet encountered any positive factors that will increase steel consumption this year. For example, since it takes time for the tourism sector and the economy to gradually recover, it causes general consumer spending to be cautious.

There is a possibility that domestic steel sales may increase in the last quarter. The potential increase depends on the start of new construction projects and farmers purchasing steel materials for home or farm repairs. However, this optimism has waned as there is doubt and concern about the ability of the newly formed Srettha Thavisin government to accelerate infrastructure development.

Especially after the EU implemented the Carbon Border Adjustment Mechanism (CBAM) on October 1, there was a fear that cheap steel imports might stop in Thailand. This possibility places restrictions on products that create high levels of carbon dioxide emissions during production with CBAM.

It is planned to give priority to green factories with the transition starting in October. Importers of a wide range of iron, steel, aluminum, cement, fertilizers, electricity, and hydrogen will have to report the greenhouse gas emissions of their imports to the EU. The regulations require the trending green production methods. The predictions consider this transition period to be a bit risky for some markets. 

It was also noted that as of January 1, 2026, importers will be obliged to pay taxes for CBAM certificates. In other words, a different practice will be implemented than reporting, which currently has no economic dimension.

Chaichalerm, after the slowdown in steel consumption in their country; He noted that it is considered possible for China and Vietnam to supply the ASEAN market with more steel. Concerns about this are related to local steel producers' fear that cheap steel imports in the Thai market will decrease and their production will not meet global standards.


No comment yet.

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In

Most read news

Sackers Metal Processing Ltd is ready to cooperate with Uzbekistan

Friday, February 23, 2024

Gerdau says it may accelerate downsizing in Brazil

Friday, February 23, 2024

Mechel JSC announced the results of 2023

Friday, February 23, 2024

Japan's January stcrude steel production surged

Friday, February 23, 2024

Tata Steel withdraws merger plan with TRF

Friday, February 23, 2024
Follow List
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.

There are no news categories you follow
Edit Notification Preferences
E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now