Thailand-based Tata Steel Thailand (TSTH), a subsidiary of Indian steel producer Tata Steel, will focus on domestic sales as the export markets are uncertain due to lockdown measures, while new road construction and road maintenance projects in the country will increase steel demand, according to local media.
The high-speed train project linking Thailand, Laos and southern China is expected to create steel demand, especially for premium rebar, amounting to around 500,000-600,000 mt.
“Last year, steel consumption in Thailand reached 16.48 million mt and this year we are seeing positive signs that will drive steel demand,” Rajiv Mangal, CEO of TSTH, said. He added that the company will not increase its 1.7 million mt annual steel production capacity. TSTH earlier expected state infrastructure projects in Thailand to increase steel consumption up to 18-18.5 million mt this year, while in the first two months local steel demand increased by six percent year on year, as SteelOrbis understands.
The company plans to spend THB 250-300 million ($7.96-9.55 million) during the 2021-22 financial year to improve its steel quality and increase production efficiency. Tata Steel expects its steel sales to be over 1.3 million mt in the 2021-22 financial year.