Despite supply disruptions caused by the armed war in Ukraine and the global economic downturn, the Federation of Thai Industries (FTI) expects local steel demand to rise this year. According to the World Steel Association, worldwide steel demand will be 1,804 million tons this year, with Thailand requiring roughly 19 million tons.
Thailand's demand for steel was 4.04 million tons in the first quarter of this year, down 17.8% year on year, according to Nava Chantanasurakon, chairman of the FTI's steel industry group.
Despite pricing fluctuations and concerns about inflation, he noted that steel demand in the country increased in the second quarter. If the government is able to revive the economy, he believes that local steel demand would rise to 19 million tons per year in the second half of this year. This, according to Nava, can be accomplished by loosening further COVID-19 rules and welcoming more overseas tourists.
Thai steel demand is comparable to 1% of global steel demand. Thailand produces 0.24 percent of the world's raw steel, hence local steel prices are influenced by worldwide market conditions.
Nonetheless, once several nations' inflation rates fell and the global economy recovered, the price of global steel began to fall.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.