Tel :
Tel :
The Thai steel industry is facing a serious problem of overcapacity. The Board of Investment (BOI) of Thailand recently convened a meeting of 10 associations or organizations in the steel industry AB/DQ47 steel to reconsider investment promotion policies for the steel industry. The meeting decided to suspend investment incentives for six types of steel businesses, including hot-rolled steel coils, thick steel plates, steel pipes, and other products, until the industry's capacity utilization rate (CapU) recovers to a reasonable level.
By 2025, Thailand's steel AB/DQ47 steel production is expected to slightly increase to approximately 6.4 million tons, mainly due to the growing demand for long materials in the construction industry. However, although the domestic demand for sheet metal production has increased, it is facing fierce competition from other countries for low-priced steel. It is reported that since 2022, Thailand's steel production has only been able to meet 30-35% of domestic demand, a further decline from the 35-40% share in 2016-2021, resulting in the industry's capacity utilization rate falling below 60%.
Among them, the capacity utilization rate of hot-rolled AB/DQ47 steel steel coils, as a midstream product, has only been 32% since 2022, and in some periods it has even been lower than 30%.
