Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Driven by mega infrastructure investments announced by the Thai government, domestic steel consumption is expected to grow 5-8pc in 2021, according to the estimates of the Iron and Steel Industry association, which is part of the Federation of Thai Industries (FTI). The steel industry has high hopes from the government projects including the Eastern Economic Corridor (EEC), electric trains in Bangkok and other housing and high-speed trains in the metropolitan.


The government has encouraged building contractors to increase the use of domestic products supporting the ‘Made in Thailand’ policy. Thailand’s annual steel consumption 2020 was at 17-18mn steel in, according to FTI report. Steel demand will be higher in 2021 than last year as delayed construction projects will resume, along with recovery in demand from other sectors.  


Amid uneven recovery in many South East Asia economies, SEAISI has anticipated the growth of steel industry to be slower. Also, the resurgence of COVID-19 infections in China could hamper steel demand further. From mid-2020, robust growth of Chinese economy and increased steel consumption lifted global steel prices on higher input costs.


Millcon steel to focus on high-quality products

Thailand’s Millcon Steel, a leading ferrous scrap consumer, eyes profits for the full year FY2020 (Jan-Dec) despite the pandemic and expects revenues to rise further in FY2021. The company is likely to supply steel for the construction of high-speed rail projects scheduled to commence in 2021. 


The demand for steel products is expected to hit 3.5mn mt in 2021, said the steelmaker. Millcon has the capacity to produce steel bars to meet the expectations of large construction firms at lower prices, while the rest of the domestic industry is dominated by rolling factories.

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