Bangkok Post reported that Thainox Stainless Steel Plc expects to revise down its sales volume target this year to 180,000 tonnes as clients are reluctant to place orders due to volatile stainless steel prices.

Mr Keerin Chuthumstid deputy MD of Thainox said that it had earlier forecast sales of 200,000 tonnes of stainless steel in 2008. But he said it had yet to confirm a revised target.

Mr Keerin said that "The nickel price in the global market was very volatile, especially in the last two months. People may think high prices are good for us, but in reality we are taking risks from the volatile market. We prefer stability in the market so we can plan our response based on predictable factors."

Mr Keerin said that the normal global growth rate of stainless steel consumption is between 6% and 8%, in line with growth in incomes. Developed nations such as the US and European countries therefore had less room to grow compared to Thailand.

Thainox recorded a 9% YoY first half increase in sales volume to 83,200 tonnes from 76,120 a year earlier. But sales value fell by 18% YoY to THB 9.2 billion from THB 11.28 billion. Net profit also fell by 8% YoY to THB 679 million.

Thainox is researching expanding the capacity of its finishing line to 300,000 tonnes per year from its current 200,000 tonnes, which would require an investment of THB 2to THB 3 billion. It has already linked up with foreign companies.

Thainox supplies 60% of its premium quality stainless steel products to various industries within the country and exports 40% of its output to more than 30 countries.