Chaichalerm Bunyanuwat, President of the EAF Long Product Steel Producers Association, expressed expectations for support towards these construction projects following the approval of the budget for the 2024 fiscal year.
Bunyanuwat noted that the steel and iron industry would benefit from infrastructure projects such as highway construction. Delays in budget planning last year are claimed to have slowed down infrastructure development, thereby reducing domestic demand. The government's focus on high-value infrastructure projects could generate economic impacts by increasing employment and revitalizing the local economy.
Among the existing projects are the Rama 3 Road-Dao Khanong highway, Bang Khunthian-Ban Phaeo highway, and double-track railway projects connecting Denchai, Chiang Rai, and Khong. New infrastructure projects include the Dark Red Line electric railway system connecting Rangsit to Thammasat University's Rangsit campus and the Kathu-Patong highway.
It is believed that supporting these projects through the budget could stimulate steel consumption in Thailand. However, expectations for the steel industry in 2024 remain uncertain. This uncertainty is attributed to various factors such as the EU's Carbon Border Adjustment Mechanism (CBAM), general elections, and geopolitical conflicts.
Meanwhile, domestic steel consumption in Thailand reportedly declined by 9.1% last year.
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