The postponement of the fiscal 2024 state budget planning due to the 2023 general elections and the prolonged process of forming a coalition government has further contributed to a downturn in the country's steel production. TSTH's president and CEO, Tarun Kuma Daga, urges the government to accelerate budget distribution for infrastructure projects to boost domestic steel demand.
Thailand witnessed a 9.1% year-on-year decrease in steel consumption in the previous year, exacerbated by increasing imports from China, which TSTH contends are undermining the local steel market. China's global steel exports reached 85.2 million tonnes from January to November, a 35.4% year-on-year increase. TSTH reports a decline in capacity utilization to 28% in 2023 from 33% in 2022, partially attributed to the surge in steel wire rod imports. The company expressed concerns over fair pricing for imported steel and, while acknowledging competition from Russia, calls on the Thai government to ensure fair competition that does not jeopardize domestic manufacturers. During Q3 of TSTH's fiscal 2024, sales experienced a 12% year-on-year drop, resulting in a revenue decline of 20.4% and a loss of 96 million baht. From April to December 2023, sales declined by 11% year-on-year to 800,000 tonnes, leading to a revenue decrease of 24% and a loss of 104 billion baht.
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