Urgent Action Needed to Address Substandard Steel Imports
PUBLISHED: 4 Apr 2025 at 06:16
In response to the recent collapse of the 30-storey State Audit Office, the Federation of Thai Industries (FTI) has issued crucial recommendations to tackle the growing problem of substandard steel imports in Thailand. Concerns have arisen that inferior steel quality contributed to this tragic incident.
Bantoon Juicharern, the chairman of the FTI’s Iron and Steel Industry Group, emphasized the need for strict adherence to quality standards in steel production and called for enhanced regulatory oversight.
He urged consumers to prioritize purchasing quality-certified products rather than opting for cheaper, substandard alternatives. Furthermore, he highlighted that imported prefabricated steel structures, with 700,000 tonnes entering the market in 2024, should be subject to mandatory quality inspections.
Increasing transparency in quality control is also a key recommendation, with a focus on tracking and verifying steel quality from production to final use. This requires a robust enforcement of industrial certification standards and improved traceability of steel products in the market.
Bantoon: Industry Faces Significant Challenges
Public awareness campaigns aimed at educating consumers about selecting high-quality steel are necessary, according to Bantoon.
He projected that Thailand’s steel demand for this year would range between 16.0-16.3 million tonnes, a decline from the pre-Covid-19 figures of 18-19 million tonnes.
The Thai steel industry is confronted with major challenges stemming from China’s production surplus, which amounts to 1.1 billion tonnes of steel annually, while domestic demand stands at approximately 900 million tonnes. This results in a surplus of 200 million tonnes available for export, raising concerns over the quality of the steel being imported, including substandard options.
FTI reports indicate that around 30,000 tonnes of substandard steel products have been imported, and additional shipments continue to arrive. These include aluminium-zinc coated steel, often referred to as SZACC, that has been misclassified to evade compliance with standards and anti-dumping duties.
These imports are primarily entering Thailand through Laem Chabang Port. Bantoon asserted that legal action should be taken if the Customs Department discovers any discrepancies between the declared and actual product classifications.
He further noted that since the Chinese government banned steel mills utilizing induction furnace technology for environmental and quality reasons in 2017, many of these producers have relocated to Thailand, exacerbating issues such as overcapacity, aggressive price-cutting, and concerns over steel quality and environmental impact. In light of these challenges, the FTI is advocating for enhanced steel quality standards and fair competition within Thailand’s steel industry.
The FTI has also called for ensuring fair competition for domestic steel producers against imports and relocated factories. It insists that authorities enforce regulations to guarantee equal compliance with labor laws, environmental standards, taxation, and product quality regulations for all manufacturers.
Additionally, the FTI is urging the government to establish procurement targets to ensure that a minimum of 50% of public sector projects utilize domestically produced steel, thereby promoting “Made in Thailand” initiatives. Extending this policy to Public-Private Partnership projects exceeding 1 trillion baht annually would significantly benefit the local industry and economy.
Moreover, the FTI has suggested that the government focus on promoting the development of “green steel” initiatives.
