Commerce Ministry agrees measures to protect steel industry from China imports
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THE Commerce Ministry and enterprises related to the steel industry yesterday agreed on measures to promote sustainable growth as well as prevent an influx of cheap steel from overseas, especially China.
The measures were agreed at a meeting of representatives of steel enterprises and Commerce Minister General Chatchai Sarikulya.
One of the measures, putting wire rods, steel sheets, hot-rolled steel sheets, cold steel, and structural steel on the sensitive list for daily price monitoring, has been in effect since June 1.
Also on the agenda is to undertake negotiations with the Chinese government towards a reduction of its export subsidy for steel and steel products destined for Thailand. Chatchai will raise the issue late this month at a meeting under the auspices of the Asean-China Free Trade Agreement.
Recently, China cancelled its subsidy on boron steel, which accounted for more than half of its steel exports to Asean.
According to the ministry, Thailand’s steel imports from China have increased during the past two years. The country imported 7 million tonnes of steel from China in 2013, and 12 million tonnes in 2014. In the first five months of this year, steel imports from China reached 5 million tonnes.
Another measure to protect the Thai steel industry entails stringent checking of steel imports by the Customs Department. Penalties for unscrupulous traders will be made more severe.
The Thai Industrial Standards Institute will review standards for steel products in order to balance demand and supply.
As a long-term measure to develop the steel industry, the Industry Ministry is conducting a feasibility study to establish upstream steel plants in Thailand or in neighbouring countries, while the Board of Investment will look for supportive measures to the same end.
Songwut Kraipaspong, chairman of the Thai Iron and Steel Industry Club under the Federation of Thai Industries, said China is currently able to produce huge amounts of steel and wants to export as much as possible, so the specific cost of production is not clear.
“Many countries, such as the United States, those in the European Union and the Middle East, and countries in Asean, have been affected by influxes of cheap Chinese steel. Thailand, which has seen a heavy impact, should come out with anti-circumvention measures, and set high standards to prevent the import of low-quality steel,” he said.
