Thailand’s Steel Sector Seen Witnessing Rapid Decline

SEATTLE (Scrap Monster): The slowdown in the country’s economy is seen impacting Thailand’s steel sector growth. The most recent data published by the Iron and Steel Institute of Thailand suggests notable decline in country’s production, consumption and export of steel.

Thailand’s finished steel production witnessed a decline by 18.7% year-on-year in Jan-Sep ’19 to total 5.74 million mt. The exports of finished steel during the first three quarters of 2019 dropped by more than 15% to 1.11 million mt. Meantime, the country recorded total finished steel consumption of 14.01 million mt from January to September this year. This is significantly down by 5.1% over the same period a year before. The consumption of long finished steel has dropped by almost 10% to 5.22 million mt during this period.

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The slowdown in steel sector is primarily attributed to the country’s weakening economy. The Thai economy is predicted to face higher risks in Q4 this year, mainly on account of risks from ongoing trade tensions and geopolitical risks. The construction sector growth in the country decelerated in Q3. The substantial decline in automobile production and exports is also cited as a reason for the slowdown in steel sector.