Bangkok (VNA) - The Federation of Thai Industries (FTI) has raised concerns over the potential domination of Thailand’s steel industry by Chinese companies, and called for regulatory action, reported The Nation.
FTI Chairman Kriengkrai Thiennukul said that the steel industry’s capacity utilisation rate has dropped to its lowest in seven years, with the first six months of this year seeing a rate of 29.3%, down from 31.2% in the same period last year.
He noted that the impact of Chinese investments, which are expected to boost production capacity to 12.42 million tonnes annually compared to Thailand’s demand of 16 million tonnes.
Despite this influx of Chinese investment, Kriengkrai assured that domestic manufacturers have enough production capacity to meet the country’s demand. He added that the Industry Ministry should introduce regulations to control the establishment of steel factories in Thailand.
He also raised concerns about the import of structural steel that does not meet Thai industrial standards, which could pose safety risks for consumers. He called for the introduction of stricter industrial standards to address this issue.
In 2023, Thailand imported 426,340 tonnes of structural steel worth 21 billion THB (595.576 million USD), of which 92% came from China./.
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