Steel production in Thailand slumped by 18.7 percent to 5.74 million mt in the January-September period this year, according to the Thailand Iron and Steel Institute, reflecting a sharp demand drop mostly in the second half of the year. According to the recent information from the Ministry of Industry, in September domestic sales volumes dropped 20.7 percent to 1.3 million mt due to the weakness in major downstream industries such as construction, automotive and electrical appliances.
Longs sales decreased the most, by 29 percent in September to 0.5 million mt. But local flats sales also posted a double-digit drop, down by 14 percent to 0.8 million mt in September compared to the same period in 2018.
Imports were also under pressure, but the decline was not so big. In September, import steel shipments were at 0.9 million mt, 2.2 percent lower year on year.
The outlook for the rest of the year is negative; however, the pace of the steel demand decline may be lower because of support from building repairs and new construction of houses that were damaged by floods, the Ministry of Industry stated.t