FTI Predicts 4% Surge in Local Steel Demand

SEATTLE (Scrap Monster): The Federation of Thai Industries (FTI) foresees 3-4% growth in domestic steel demand in 2020, primarily due to increased demand from automotive and construction sectors. The domestic steel demand in the country is expected to top 18.9 million tonnes, this year.

According to FTI, the automotive industry is likely to recover in 2020, with sales expected to pick up. It must be noted that a resilient Thai baht had resulted in reduced exports during the previous year. The government’s ongoing push for infrastructure projects will lift the steel demand from construction sector. On an average, Thailand’s construction sector steel demand comes to around 10 million tonnes. However, the newly announced infrastructure projects in the Eastern Economic Corridor (EEC) is likely to add significantly to 2020 steel demand, noted FTI.

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The FTI urged the Thai government to extend support to local steelmakers by ensuring exclusive use of locally made steel in government’s EEC projects. It noted that several factor had negatively impacted the domestic steel industry in 2019. The government’s delay in investing in infrastructure projects and lack of new construction activity contributed to reduced steel demand. Also, the increased volume of imports from other countries, especially from Vietnam and China, impacted local steel demand.