Posted on 06 May 2025
US President Donald Trump's tariffs are expected to deal a blow to the steel market, which is likely to see a decline in steel consumption, says the EAF Long Product Steel Producers Association.
The reciprocal tariffs, which will likely be imposed on goods from many countries, are predicted to cause a recession that will lead to lower demand for steel and price fluctuations, said association president Chaichalerm Bunyanuwat.
The association plans to monitor the global economy after Washington's pause on the enforcement of steep duties expires later this year, he said.
Early last month, Trump an- nounced heavy duties on imported goods to deal with trade imbalances. The measure was set to take effect on April 9.
The president later delayed the tariffs for 90 days, allowing countries to negotiate on trade.
"We are concerned about the risks and uncertainties of the tariff policy as well as an intensifying trade war," said Mr Chaichalerm.
"These circumstances will affect Thai GDP and steel consumption in the country and the global market."
The Bank of Thailand's Monetary Policy Committee (MPC) developed several economic growth projections this year based trade outcomes.
If trade tensions escalate, leading to significantly higher US tariffs, growth could slow to around 1.3%, according to the MPC.
A sluggish economy would hinder the Thai steel industry, which is also struggling to deal with imports from China.
Mr Chaichalerm said China may export more steel products to Southeast Asia as a result of the trade war with the US. Other countries are also expected to sell more steel in this region, he said.
During the first two months of this year, Chinese steel exports to Southeast Asia rose by 5.2% year-on-year to 16.9 million tonnes.
In Thailand, steel consumption tallied 16 million tonnes last year, with rebar steel representing 12 million tonnes and the remainder other forms of the metal.
Up to 60% of steel sold domestically is used in the construction sector, followed by 30% in the automotive sector and 10% in other sectors.
Source:Bangkok Post
