According to market sources and local media reports, Thailand is going to increase its HRC capacities not only to cover local needs, but also to increase its presence in the export market. In addition, the local manufacturer is targeting a wire rod capacity expansion to replace imports, from China in particular.
The SKY Company (Xin Ke Yuan Steel Co), the main IF rebar steel producer in Thailand, present in the market over the past seven years, is working on "expansion into flat products" according to a local source. In the media reports, the full capacity of the new project, which is being built together with Chinese partners, will be 5.6 million mt of HRC per year, 2.8 million mt of wire rod, 132,000 mt of debar in coils and 66,000 mt of plain bar per year. Initially, the first phase of the project was going to be launched in the second half of 2024, but after the news about the fatal accident at the construction site in March, market sources believe that the project start-up will be delayed.
The expansion of HRC capacities in the ASEAN market is the new trend with Indonesian giant Dexin Steel going to start production at its 2 million mt line in the middle of this year. "The expansion is good from one side, but the market may be very quickly oversupplied," a local source in Bangkok said.
At the moment, the SKY Company (Xin Ke Yuan Steel Co) has the capacity to produce 200,000 mt of rebar per year.
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