The Thailand Commerce Ministry has announced that expansion of steel plants and construction of steel bar plants will likely be banned for the next five years in Thailand to reduce the domestic surplus. The regulation draft was recently approved by the cabinet. According to Somchai Harnhirum, the acting industry minister, the ministry plans to propose it to the Council of States for endorsement.
According to media sources, Thailand's steelmakers produce 9 million mt of steel bar a year for construction, while the domestic market demands only about 3.45 million mt (38 percent of production) annually. Hamhirum added that Thailand has 45 steel bar plants with a total capacity utilization rate of 33.2 percent and can expand steel capacity use in the future to meet domestic market demand.