Tata Steel Thailand Shifts Focus from Exports to Local Market

SEATTLE (Scrap Monster): Tata Steel Thailand (TSTH) announced its decision to shift its focus from exports to domestic market in the country. The strategic shift is primarily on account of the anticipated rise in local steel demand due to increased government spending on road and rail projects- the two key major steel-consuming sectors.

The series of steel infrastructure investments is expected to drive TSTH’s revenues. The company had estimated that these projects are likely to deliver significant growth to steel consumption up to 18.5 million tonnes during the current year. It must be noted that Thailand’s steel consumption had totalled 16.48 million tonnes in 2020. The initial trends have remained positive during early-2021, with steel demand witnessing 6% surge during Jan-Feb ’21.

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According to Rajiv Mangal, chief executive, TSTH, the switch to local markets is partially due to uncertainties in export markets due to pandemic restrictions. The overseas demand too has dropped significantly during the past several months. The company has no immediate plan to boost its steel production capacity from 1.7 million tonnes per year, Mangal added.

TSTH expects total steel sales during fiscal year 2022 at around 1.3 million tonnes.