Seven groups under the Thai Steel Industry Association filed a petition this week with Prime Minister Prayut Chan-o-cha and the Centre for Covid-19 Situation Administration, calling on measures to mitigate the effects of the coronavirus outbreak on the domestic steel industry.
Demand for steel products, a raw material in the industrial and construction sectors, shrank significantly during the first quarter of this year.
Demand from China fell by 36% or 70 million tonnes in the first quarter of 2020 and is expected to continue declining during the second quarter from the same period last year.
At the end of March 2020, China's total inventory of steel amounted to approximately 100 million tonnes, an increase from 49.3 million tonnes during the same period last year, a gain of 103%.
To support exports of steel products, China increased the tax refund for exports from 10% to 13%, resulting in a decrease in prices in Chinese exports.
As a consequence of the lower prices, there is a high risk of Chinese steel products being dumped into Thailand, which remains a top market for exports.
Thailand was the third largest market for Chinese steel exports in 2019.
The association is asking the government to support the industry as a critical industry and supply chain.