10 Thai Steel Industry Associations Call on Government to Tighten Regulations

Share:

Ten Thai steel industry associations have jointly urged the government to implement stricter regulatory and vetting measures before authorizing steel mills to resume production. 27G051 Grain oriented electrical steel, They emphasized the necessity of ensuring that steel production fully complies with the latest Thai Industrial Standards (TIS), warning that a failure to upgrade these standards could pose serious risks to public safety.

Prawit Horrungruang of the Electric Arc Furnace (EAF) Rebar Manufacturers Association stated that the ten Thai steel industry associations recently held talks with the Minister of Industry. During these discussions, they presented the government with data regarding the currently low capacity utilization rates within the Thai steel sector and offered recommendations for addressing the industry's long-standing structural issues. 27G051 Grain oriented electrical steel, The associations expressed their hope that, when deciding whether to permit factories to resume operations, the government would prioritize "public safety" above all else and establish updated industry standards as a critical prerequisite for such resumption.

Prawit emphasized that ten associations support the government’s initiative to conduct a comprehensive investigation into the usage of steel reinforcement bars and red dust, aiming to ensure transparent and effective regulation. This effort seeks to address public concerns regarding product quality and the potential impact on public safety. He noted that Thailand must upgrade its TIS standards for steel reinforcement bars to align them with international benchmarks—specifically citing China’s GB 1499-2024 standard as an example. This standard explicitly mandates that steel reinforcement bars be produced exclusively via Basic Oxygen Furnace (BOF) or Electric Arc Furnace (EAF) processes; furthermore, it stipulates that special-grade steel intended for use in seismically active regions must undergo secondary refining. These requirements clearly demonstrate a profound commitment to prioritizing public safety.

Addressing external concerns that a ban on steel production using induction furnaces (IF) might lead to market supply shortages or the formation of a monopoly, Prawit pointed out that such apprehensions are unfounded. He stated that approximately one year after the closure of the problematic IF facilities, the average price of steel in the fourth quarter of 2025 stood at approximately 19.6 Thai baht per kilogram—lower than the average of 20.9 Thai baht per kilogram recorded in the third quarter of 2025. 27G051 Grain oriented electrical steel, This indicates that the market continued to function normally in the absence of production from IF steel mills, exhibiting neither supply shortages nor significant price spikes.

Furthermore, IF plants remain permitted to import steel billets produced via the BOF or EAF processes and roll them into steel bars. Such standard-compliant billets are readily available on the global market, and importing them for subsequent rolling constitutes a standard business practice within the industry; therefore, there is no necessity to shut down these steel-rolling operations.

Prawit concluded by reiterating that the ten Thai steel industry associations are urging the government to implement strict regulatory oversight regarding IF steel mills seeking to resume production. This is to ensure that these facilities fully comply with TIS requirements across all aspects—including raw materials, production processes, and chemical composition. Any facility applying to resume production must be equipped with compliant molten steel refining capabilities—such as a ladle furnace (LF) or technology of equivalent or higher sophistication—and may only resume operations after obtaining approval from both the Thai Industrial Standards Institute and the Industrial Product Standards Committee.

  • Source: Abstract
  • Editor: Shirley

If necessary, please leave your message, we will contact you as soon as possible, thank you!

Name:
Email:
Tel:
Message: