The Federation of Thai Industries (FTI) has expressed concerns over the increasing influence of Chinese companies in Thailand's steel sector and has urged for stricter regulatory measures.
FTI Chairman Kriengkrai Thiennukul highlighted that the steel industry in Thailand is facing its lowest capacity utilization rate in seven years. In the first half of this year, the rate fell to 29.3%, down from 31.2% during the same period last year.
Chinese investments are projected to increase production capacity to 12.42 million tons per year, compared to Thailand's demand of 16 million tons.
Despite the surge in Chinese investment, Kriengkrai reassured that domestic manufacturers possess sufficient capacity to meet the nation’s steel needs. However, he emphasized the need for the Industry Ministry to introduce regulations aimed at controlling the establishment of new steel factories in Thailand.
In 2023, Thailand imported 426,340 tons of structural steel valued at 21 billion THB (approximately 595.576 million USD), with 92% of these imports originating from China.
In this regard, Kriengkrai voiced concerns about the import of structural steel that fails to meet Thai industrial standards, potentially posing safety risks for consumers. He called for the implementation of more stringent industrial standards to address these safety concerns.
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