Steel market in doldrums

Steel market in doldrums

The Industry Ministry expects demand for steel will grow by as little as 3% next year despite the government's investment in megaprojects, says Udom Wongviwatchai, deputy director-general of the Office of Industrial Economics.

In the final quarter of this year and the first quarter of next year, the government expects demand for steel will increase in line with the launch of the 2.6-trillion-baht infrastructure projects.

The steel industry expects consumption this year to reach 17 million tonnes of all types of steel, with 6.2 million produced by domestic companies and the remainder imported.

"We hope that the infrastructure projects will significantly push domestic demand to grow. But it also depends on how quickly the investment kicks off and if it is coming in the first quarter of 2015," said Mr Udom.

Regarding Japan's request for Thailand to increase the quota for its steel to be imported without duty, Mr Udom said it was likely to find a solution after a meeting on Dec 11.

The Thai government has asked Japan to transfer high-technology know-how under previous trade arrangements including training programmes by Japanese specialists on high-grade steel production.

Thailand wants to see solid evidence of a technology transfer before deciding on a significant increase in the duty-free imported steel quota.

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