The Federation of Thai Industries (FTI) has stated that the Thailand steel industry is concerned about the consequences of rising Chinese investments and substandard import products in the market and that local steelmakers are demanding action from the government, according to local media reports.
In the January-June period of this year, the capacity utilization rate of the domestic steel industry dropped to only 29.3 percent, the lowest level over the last seven years. In 2023, the capacity utilization rate was recorded at 31.2 percent, while it was 33.4 percent in 2022. In addition, the investments of Chinese steel companies pose a threat. Currently, Chinese companies are investing to create a total production capacity of 12.42 million mt in Thailand, while Thailand's steel demand this year amounts to 16 million mt. Kriangkrai Thienukul, chairman of FTI, pointed out that local steelmakers are capable of meeting the domestic demand and that the ministry of industry should rein in the construction of new steel plants. He also noted that, if China continue its steel investments, it will directly impact domestic producers and will lead to a further decrease in the capacity utilization rate.
Moreover, import products that do not have a certificate of compliance from the Thai Industrial Standards Institute (TISI) create a safety risk. As a result, the local steel industry is calling for stricter measures to control substandard product influx.
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