10 Steel Industry Associations Meet with Industry Ministry to Propose Emergency Solutions for Steel Crisis
Ten Thai steel industry associations met with the Industry Ministry to propose emergency measures addressing the sector's crisis, including capacity expansion bans and stricter quality controls for low-cost imports that have crippled domest
A coalition of ten Thai steel industry associations, led by Nava Chantanasurakhon, chairman of the Thai Hot-Rolled Steel Plate Association, met with Industry Minister Varawut Silpaarchcha and senior ministry officials to discuss and present proposals for resolving Thailand's steel industry crisis. The meeting addressed the escalating problem of low-cost steel imports and global overcapacity that has severely impacted Thai manufacturers throughout the supply chain.
The coalition, representing over 510 companies and employing more than 51,000 workers, emphasized that the steel industry is foundational to Thailand's economy and serves as the backbone for downstream industries including construction, automotive, machinery, electrical appliances, and food packaging. Thailand currently faces high import dependency, consuming approximately 16.5-18 million tons of steel annually, with domestic production accounting for only 6.5-7 million tons per year. This has resulted in the domestic steel industry's production capacity utilization dropping to just 27.9%, significantly below the global average of 75%.
The coalition proposed three major measures with eight sub-measures to address the crisis:
1. Steel Industry Restructuring Measures: 1.1 Ban on establishment and expansion of production capacity in overcapacity sectors such as hot-rolled steel plate, wire rod, steel pipe, structural steel, and stainless steel, allowing only investments to improve efficiency and quality without expanding capacity. 1.2 Regulation of steel bar mills using induction furnace (IF) technology, requiring them to pass technology certification and quality control standards through the Thai Industrial Standards Institute's technical committee to prevent substandard steel from entering the market.
Industry Minister Varawuth announced signing a draft regulation banning new establishment and capacity expansion in the hot-rolled steel plate industry to address overcapacity and maintain industry stability. The ministry also recognizes quality concerns with IF systems and has a clear policy to transition Thai steel mills from IF technology to Electric Arc Furnace (EAF) systems.
"We will consider and establish appropriate transition guidelines and timelines, while regulating the use of IF-produced steel according to consumer applications to ensure safety and compliance with industrial standards," the minister stated.
2. Domestic Steel Product Promotion Measures: 2.1 Control of prefabricated structural steel products to prevent standard circumvention and protect Thai industry. 2.2 Mandate use of Made in Thailand (MiT) products in public-private partnership (PPP) projects and BOI-promoted investment projects, using appropriate proportions of domestically produced steel and materials to create added value and employment. 2.3 Support for trade measures...
