Producers, government discuss ways to tackle problems hindering growth of steel industry
TWENTY-FOUR Thai steel producers and traders and eight government agencies yesterday for the first time sat down together to discuss how to make the country's steel industry sustainable for the long term.
Commerce Minister General Chatchai Sarikulya said his ministry would act as a coordinator for the steel industry, related enterprises and government agencies to tackle many problems hindering the growth of the country’s steel-related enterprises.
Currently, Thailand demands about 18 million tonnes of steel each year. However, Thai producers supply only about 8 million tonnes, with the rest imported. Some steel users have chosen to use cheaper, lower-quality imports, prompting calls by the local steel-makers for government safeguards or anti-dumping duties.
“All involved, including government agencies and the private sector from upstream to downstream, need to brainstorm and discuss how to solve problems in steel trading and balance benefits for all, as well as create sustainable measures to ensure the growth of the Thai steel industry,” Chatchai said.
The next meeting on this issue among government agencies including the Commerce, Industry and Finance ministries and the Board of Investment is set for the middle of next month. After that, these agencies will hold discussions with the private sector.
At the first meeting, some enterprises called for the government to allow more imports of cheap steel, as different applications called for different types of this product. However, the steel producers called for maintaining protectionist measures, as the use of imports by many enterprises was already keeping the steel-makers’ production capacity at only 30 per cent of its potential.
Thailand imposes duties on imported steel ranging from 7-27 per cent depending on type. Chatchai said the government would need to maintain these duties until the Thai steel industry could become more competitive.
Songwoot Graipaspong, chairman of the Steel Industry Club under the Federation of Thai Industries, said private enterprises wanted to see development throughout the industry from upstream to downstream.
The government should also set up a price-recommendation system running from the factory gate to end user, rather than only at the factory gate as currently. The present system makes the price of steel difficult to control, he said.
He also called for establishment of an iron smelter. If the country had its own smelter, it could carefully control its impact on the environment and clarify all issues of concern to the public.
