Construction steel demand in Thailand is unlikely to improve in the first half of 2020 due to the further delay of the new budget.
Some sources believe that 2020 will be another year of decline in steel consumption in Thailand. In the first half of 2019, domestic steel consumption fell 2.7 percent year on year to 9.3 million mt, according to the South East Asia Iron and Steel Institute (SEAISI). “We do not see any improvements. Construction projects are further delayed,” a source said.
The new budget was expected by the end of October 2019, but it was first delayed until March and now the timeline is May, according to local press. The investment budget for 2020 is THB 600 billion ($19 billion), and 50 percent of this has already been committed to contractors in advance, but mainly for already-started projects, while the rest of the investments should be spent on new projects.