SET Listed Tata Steel Thailand Plc (TSTH), a unit of India's largest steel maker, expects steel consumption in Thailand will recover after the flood crisis which affected steel sales.
Up to 18 provinces were earlier inundated, causing a slowdown in retail sales in the market.
Rajiv Mangal, chief executive of TSTH, said he is positive about sales recovery expected to be slowly achieved during the last quarter of this year.
“The company expects consumers will buy more steel products for construction projects, including repair work and investment resumption, after the flood crisis,” he said.
The better business prospect will also result from the government’s plan to reopen the tourism industry and its budget spending on infrastructure projects, including the Sino-Thai high-speed train system development.
Domestic consumption of steel from January to August this year rose by 18.3% year-on-year to 13.08 million tonnes despite the Covid-19 impact, according to the Iron and Steel Institute of Thailand.
The growth was driven by demand from the state infrastructure development while infrastructure projects in the private sector slowed down.
Earlier this year TSTH expected the state projects would help boost steel consumption in Thailand, which was expected to reach 18-18.5 million tonnes in 2021.
Mr Mangal said the company plans to increase its steel exports, following the state order to temporarily shut down construction workers’ camps to contain the spread of Covid-19.
“TSTH expects its steel exports will make up 9-10% of total sales this year,” he said.
TSTH exported 6,500 tonnes of steel products to Canada in April.
The company plans to export another lot of 15,000 tonnes to the country in November.Internet Explorer Channel Network