October 12, 2008

Private projects keep steel demand steady in Thailand

According to Mr Wikrom Vajragupta MD of the South East Asia Iron and Steel Institute, Thailand's demand for steel is expected to rise by 4% to 5% in 2008 from 12.14 million tonnes in 2007 due to private construction projects.

However, Mr Wikrom predicted that a decline in global and domestic steel prices in the second half due to falling demand caused by a slowing US economy. He said that ''Steel prices should not rise beyond the current level.”

Hot rolled steel coil and steel bar prices have risen above USD 900 a tonne from an average of USD 500 last year on soaring cost of coal and strong demand from India, China and the Mideast. Mr Wikrom said that ''Steel consumption should slow in the second half of this year which may affect prices for the period.”