ISIT Forecasts Thai Steel Demand at 11.5-13MT in 2010

Mr. Wikrom Vajragupta, Secretary of Iron & Steel Institute of Thailand (ISIT), revealed a view that Thai annual steel demand is expected to increase by 15-20% to 11.5-13 million tonnes in 2010 compared with 2009 at an interview with Japan Metal Bulletin in Bangkok on February 1st. The annual demand returns to the level almost as high as in 2008. ISIT forecasts Thai economic recovery continues in 2010 after the car production increase in October-December 2009.

Thai annual steel demand decreased by 20.8% to 10.76 million tonnes in 2009 from 2008. Meanwhile, the demand increased by 75% year-to-year in October-December. Steel makers’ production increased for steel sheets consumed by manufacturing industry, steel bars and wire rods used for constructions.

Thai annual car production is expected to reach 1.43 units in 2010, which will rebound from 890,000 units in 2009 and exceed record 1.4 units in 2008. The government implements the economy stimulation measure with investment of total 1.43 trillion bahts (approximately 4 trillion yen).

Thai steel demand exceeded 10 million tonnes per year in 2000 and hit record 14.14 million tonnes in 2005. The demand decreased to 13.01 million tonnes in 2006 when the economy was impacted by a coup.

The steel demand is larger by 60-70% than in Malaysia and Vietnam. Thailand is the largest steel consumer in Southeast Asia, which imported 4.66 million tonnes from Japan at the peak in 2008. Japanese steel export would be stimulated by Thai manufacturing industry in 2010, especially by Japanese automakers’ plants in the country.