The Federation of Thai Industries (FTI) expects the local steel demand to rise for the year, despite the disruption of supply from the armed conflict in Ukraine and the global economic slump. The World Steel Association estimated that the global steel demand this year will be 1,804 million metric tons, with Thailand needing about 19 million tons.
Nava Chantanasurakon, chairman of the FTI’s steel industry group, explained that during the first quarter of this year, Thailand’s demand for steel was 4.04 million tons, a 17.8% contraction year-on-year.
Nonetheless, he pointed out that the demand for steel in the Kingdom rose in the second quarter, despite price fluctuation and concerns over inflation. He speculated that the local steel demand will further improve to 19 million tons annually over the last half of this year if the government is able to stimulate the economy. This, in Nava’s opinion, can be done by relaxing more COVID-19 restrictions and accommodating more international visitors.
Thai demand for steel is equivalent to 1% of the global steel demand. As Thailand can produce 0.24% of global raw steel production, local steel price thus depends on factors from the world’s market.
Nonetheless, the price of global steel started to climb down after the inflation rate in many countries decreased and the world’s economy recovered. (NNT)