Posted on 30 Jun 2025
The Industry Ministry must take serious action to curb manufacturing of rolled steel in Thailand in order to prevent oversupply, in addition to bracing for higher US tariffs on steel and aluminium, says the Federation of Thai Industries (FTI).
The glut is attributed to various factors, including an influx of low-cost steel products into the Thai market, while steel and aluminium duties affect the international trade of Thai manufacturers.
Authorities should not permit the construction of new factories and production capacity expansion for hot and cold rolled steel for at least five years to help local manufacturers maintain their businesses, said Nava Chantanasurakon, vice-chariman of the FTI.
"The steel industry is slowing as demand declines due to weaker construction and automotive industries, as well as a stagnant global economy," he said.
Hot rolled steel, which is renowned for its strength, durability and cost-effectiveness, is used in construction, car manufacturing, and the manufacturing of heavy machinery.
Cold rolled steel is a key component in household appliances, metal furniture and auto parts.
The cabinet resolved earlier for the Industry Ministry to extend a ban on the establishment or expansion of factories producing steel bars and small steel bars used for concrete reinforcement for a further five years until 2030 to address the glut.
The FTI wants the cabinet to draw up a similar resolution to strengthen protections for local steel manufacturing.
Local manufacturers are struggling to deal with steel imports from China, reducing capacity utilisation in the Thai steel industry to less than 30%.
Mr Nava said Thailand's steel con- sumption this year is projected at 16 million tonnes, the same as last year, thanks to state and private investment projects.
Up to 60% of steel products are used in the construction sector, with 30% going to the automotive industry. The remaining 10% is utilised by other industries.
On the international front, Thailand is the 11st-largest exporter of aluminium to the US. The country sold 65,204 tonnes to the US last year.
Exporters are concerned about US President Donald Trump's decision to double the tariff rate on steel and aluminium imports from 25% to 50%.
Source:Bangkok Post