Thailand’s sluggish car sales have led to an 11 to 12% decline in premium-grade steel sales during the first four months of 2024, raising concerns about reduced steel consumption this year, according to the Federation of Thai Industries (FTI).
Local steel mills are bracing for a challenging period and expect a drop in steel demand across all industrial sectors, an authorized source said. This is attributed to a decline in premium steel supplied to the automotive sector, weak consumer purchasing power and lower automobile production due to debt problems and lower domestic car sales.
High household debt levels have caused banks to become more cautious, implementing stricter criteria for car loans to avoid non-performing loans.
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