
Steel consumption should increase by 3% this year, driven by government stimulus measures and the continual growth of the Chinese economy, says the Federation of Thai Industries' (FTI) Steel Industry Club.
In 2024, steel consumption was estimated at 15-16 million tonnes, similar to the amount in 2023.
"We are positive about the steel market in 2025 after years of challenges including shrinking demand, falling prices and stiff competition from Chinese imports," said Nava Chantanasurakon, chairman of the club.
He expects the government's economic measures to bear fruit, contributing to GDP growth and driving steel demand.
In the construction sector, which uses steel as a raw material, demand is expected to improve after the sector survived unfavourable business conditions last year, said Mr Nava.
The club believes China plans to export less steel this year as steel demand in China is expected to grow as the economy recovers.
According to the State Council of China, Chinese GDP reached US$18.8 trillion, posting growth of 5% last year. Kang Yi, head of the National Bureau of Statistics, said the growth rate is among the highest among the world's major economies.
The improving Chinese economy was attributed to a series of measures launched since September last year. They include the allocation of 10 trillion yuan in new fiscal funding to address local government debt risks.
An increase in Chinese steel imports to Thailand was a major concern among steel manufacturers here.
Tata Steel (Thailand) Plc, a unit of India's largest steelmaker, said earlier Chinese firms directly exported steel to Thailand or initially sent it to neighbouring countries from which the products were then reportedly re-exported to Thailand.
Direct and indirect steel shipments from China rose by 7% year-on-year in 2024, leading to a drop in steel production in Thailand by 2%, according to the club.
China exported 105 million tonnes of steel worldwide last year after Beijing relaxed its steel output cut policy, which was launched to reduce oversupply and pollution caused by the steelmaking process.
The FTI wants the government to step up efforts to prevent Chinese companies from dumping steel in the Thai market and deal with other inexpensive Chinese imports.
The Joint Standing Committee on Commerce, Industry and Banking is calling on the government to enforce the 1999 Anti-Dumping Act and the 2007 Safeguard Measures on Increased Imports Act against the influx of low-cost Chinese products into the Thai market.