The Thai steel industry has experienced a revenue loss of over 10 billion baht over the past decade, mainly due to an economic slowdown and an influx of cheap Chinese steel products. Local steel manufacturers report a significant decrease in capacity utilization to below 30%.
If the situation worsens, many local steel factories may shut down, or some may sell their factory licenses to Chinese steelmakers to maintain employment, raising concerns over production standards under new employers.
Thailand is currently the world’s fifth largest steel importing country, purchasing over 10 million tonnes of steel from China annually, compared to six million tonnes produced domestically. In 2024, total steel consumption in Thailand was between 15 and 16 million tonnes, with similar levels projected for this year due to construction projects in the state and private sectors.
