Bangkok Post reported that SET-listed Thai steel manufacturer Millcon Steel is calling on the government to use local steel in 10 infrastructure projects under public-private partnership to bolster the industry and protect the domestic market against cheaper steel imports from China and Vietnam. Millcon president and executive officer Mr. Pravit Horungruang said, “This is not in conflict with WTO regulations because Thailand did not sign the Government Procurement Agreement under the WTO. Though it is a WTO member, Thailand can benefit from a legal gap in the WTO to implement certain measures to support the domestic industry as long as it does not sign the GPA. Domestic steelmakers have proposed the idea to Deputy Prime Minister Wissanu Krea-ngam. We hope the government will come up with new actions to help us.”
Steel consumption in Thailand has slowed for many years. Cheaper steel imports and the pandemic’s impact, which delayed construction projects, worsened the situation. Consumption in 2020 is expected to decrease to 16.7 million tonnes from 18.6 million tonnes last year.
The largest four of the ten projects in terms of required steel include a 224-billion-baht high-speed train system linking three airports, which is expected to use up to 900,000 tonnes of steel, the most among the ten projects. A 179-billion-baht Sino-Thai high-speed railway development is projected to need 800,000 tonnes. The 155-billion-baht Laem Chabang deep-sea port expansion will use 750,000 tonnes. The 122-billion-baht Orange Line, an electric train system linking Bang Khun Non with Min Buri in Bangkok, will require 430,000 tonnes of steel.
