Government intervention could end Thailand’s Steel Woes

Steel industry capacity utilisation in Thailand is on a downward spiral, with Tata Steel Thailand Plc (TSTH), a subsidiary of India’s largest steelmaker, attributing this trend to the sluggish economic recovery and the influx of inexpensive steel from China.

The postponement of the fiscal 2024 state budget planning as a consequence of the 2023 general elections and the protracted process of forming a coalition government has further resulted in a downturn in the country’s steel production.

With a call to action for the government, Tarun Kuma Daga, president and chief executive of TSTH, stated he is confident in the turnaround.

“We hope the government will speed up its budget distribution via infrastructure development projects to drive domestic steel demand.”

In the previous year, Thailand’s steel consumption witnessed a year-on-year…