Wirote Rotewatanachai, President, Iron and Steel Institute of Thailand, gave insights into the steel industry in Thailand in the MRAI session on Future of Secondary Steel Industry: Global perspective. The country imports about 10 million tonnes of steel in a year, while its production is about 7 million tonnes. “The trend in Thailand has been stable, despite a weaker market in 2023, in comparison to 2022.” He noted that in 2022, the ratio of flat product demand to long product demand was 62 to 38. Most of the steel demand in Thailand comes from construction and automotive industries. “57 per cent come from the former and 22 per cent from the latter," he explained. 

Thailand is one of the most important car makers in ASEAN. “We produce around 2 million units of cars per year, although COVID-19 pandemic affected this sector.” Talking about the scrap trade, he said, “The country imports 1.6 million tonnes of scrap year on year and exports about 9.2 per cent year on year." 

He said the steel demand will increase with China’s ‘One Belt, One Road’ project. In 2013, the launch of China’s “Belt and Road Initiative”, was followed by a going out strategy for Chinese enterprises, to move out China’s overcapacity as a basis for its development strategy and foreign policy. For iron and steel, China has identified Southeast Asia as the market with huge potential, he noted. “There will be an increase in investment in the ASEAN region in the near future.” 

ASEAN countries consume around 70 million tonnes of steel per year. If Chinese mills invest in Southeast Asia, the capacity of steel will double in the next decade, he said. It may create overcapacity problem just like in China. “In ASEAN, in the past, we made steel from electric arc furnace, but in the near future, investment in basic oxygen furnace steelmaking is expected to increase. It means that the carbon emission per tonne of steel may change.” Talking about EU’s CBAM, he said, other countries will also follow suit in the future. It is also time to tap the green energy market, he said highlighting the high electricity cost in Thailand. He emphasised that recycled material is a promising solution for Thailand and other ASEAN countries. He concluded by saying that BIMSTEC should take these key issues into consideration.