Local steel producers are calling on the government to launch safeguard measures to protect Thailand's steel industry, as they are concerned US President Donald Trump's policies will bring a flood of steel from China.
Theerayuth Lertsirarungsun, president of Thai Steel Wire Rod Trade Association, said the US plan to impose tariffs of 25% on steel and 10% on aluminium will have both direct and indirect impacts on the domestic steel industry.
"The US policy will become effective on March 23, affecting hot-rolled steel and cold-rolled steel products," he said.
For the direct impact on local steel producers, Thailand will lose steel exports to the US. The country exports steel products to the US worth an average of 10 billion baht a year.
Mr Theerayuth said wire rod steel has not been affected by the US policy yet because Thailand does not export this product to the US, but the association is concerned about steel exports in other countries causing price dumping in the local market.
"China will export its steel products to other countries in Asia like Thailand after the US imposes these tariffs," he said.
Thailand imported 750,000 tonnes of wire rod steel from China in 2017, a decrease from 1.2 million tonnes a couple years ago.
The wire rod steel market in Thailand has a total value of 60 billion baht.
There is demand of 2.3 million tonnes a year in the country.
Thailand's wire rod steel industry has a utilisation rate of 50% of overall capacity, so Mr Theerayuth said if other main producers price dump in the market, it will destroy the domestic industry.
"The import volume of wire rod steel from China has dropped, but 750,000 tonnes still affects local steel producers," he said.
Thailand is the world's fifth-largest steel importer. Year-to-date, Thailand has imported 3.7 million metric tonnes of steel, down 6% year-on-year from 3.9 million metric tonnes in 2016.
Thailand's imports represented 5% of all steel imported globally in 2016.