In the first half of this year, demand for steel in Thailandincreased significantly, up 1.5% year-on-year to 8.48 million tons. In 2017,the apparent demand for steel in Thailand fell sharply by 14% year-on-year to16.5 million tons. The main reason for the sharp drop in demand was thedestocking measures of the Thai steel industry. However, demand for steel inThailand has rebounded slightly this year. This is basically the same as thegrowth rate of the two major steel consumption sectors in Thailand -construction and automotive.
According to a report issued by the National Economic andSocial Development Council of Thailand, the construction industry in Thailandincreased by 1.6% in the first half of this year, compared with a decrease of1.4% in the same period last year. In a research report released in April thisyear, Ayutthaya Bank of Thailand said that in the long run, due to the increasein spending on large-scale projects, Thailand's public construction willachieve strong growth.
It is the growth of demand for steel at home and abroad thathas made Thailand's steel output continue to be stable. In the first half ofthis year, Thailand's steel output remained at 3.46 million tons, and totalsteel imports increased by 4.4% year-on-year to 5.8 million tons. On the otherhand, Thai steel exports increased by 15.2% year-on-year to 778,000 tons.