Thailand prepares to expand HRC capacities

Additionally, local manufacturers are aiming for an expansion in wire rod capacity to reduce reliance on imports, particularly from China.

The SKY Company (Xin Ke Yuan Steel Co), Thailand's primary producer of rebar steel for the past seven years, is reportedly diversifying into flat products, as per a local source. According to media reports, the full capacity of the new project, built together with Chinese partners, will consist of 5.6 million metric tons of HRC, 2.8 million metric tons of wire rod, and other steel products per year.  Initially planned for launch in the second half of 2024, the project's commencement might face delays following a fatal accident at the construction site in March, according to market sources.

The trend of expanding HRC capacities in the ASEAN market continues, with Indonesian giant Dexin Steel gearing up to commence production at its 2 million mt line by mid-year. However, while expansion is viewed positively, there are concerns about the potential oversupply in the market. Currently, the SKY Company (Xin Ke Yuan Steel Co) has an annual rebar production capacity of 200,000 mt.