Thai steel market stagnation anticipated in 2023 amid economic issues

The Thai metal market faces a period of stagnation in 2023, with consumption ranges predicted to match these of last year at sixteen million tonnes.
This prediction comes from Chaichalerm Bunyanuwat, president of the EAF Long Product Steel Producers Association, who cites the slow resumption of government infrastructure tasks, weak client spending power, and high household debt as contributing components.
“We have but to see constructive components that may enhance steel consumption this year.”

Chaichalerm famous that the gradual recovery of the tourism sector and the economic system at giant is resulting in cautious consumer spending.
There is a glimmer of hope in the last quarter, as Bunyanuwat suggests, the place home metal gross sales would possibly see an uptick. The potential boost is attributed to the beginning of new building tasks and farmers purchasing steel materials for home and farm repairs.
However, this optimism is tempered by considerations over the newly formed Srettha Thavisin government’s ability to fast-track infrastructure development. Chaichalerm additionally raised fears over the potential dumping of low cost steel imports in Thailand, particularly after the EU’s enforcement of the Carbon Border Adjustment Mechanism (CBAM) on October 1.
The CBAM is a tariff geared toward merchandise related to excessive levels of carbon dioxide emissions during manufacturing.
The transitional section, which begins in October, requires importers of iron, steel, aluminium, cement, fertiliser, electricity, and hydrogen to report their imports’ greenhouse gasoline emissions to the EU, with none monetary repercussions. However, come January 1, 2026, importers might want to pay a levy for CBAM certificates.
Chaichalerm voiced concerns over the potential of China and Vietnam flooding the ASEAN market with more steel, following a slowdown in metal consumption within their very own countries.
“Local metal makers are nervous that cheap metal imports shall be dumped in the Thai market and their manufacturing might not meet world standards.”

On demand elaborated that this could lead to excessive carbon dioxide emissions, which might impact Thailand’s production and export of steel-reliant merchandise like cars, digital products, and residential appliances, reported Bangkok Post.
Follow more of The Thaiger’s latest stories on our new Facebook web page HERE..

Leave a Comment