Bangkok: The Thai Steel Association has called on the government to review the standards for steel reinforcing bars, highlighting concerns over building safety in earthquake-prone areas and inconsistencies in steel quality due to the use of induction furnaces. The association also emphasized the potential for export growth driven by the EU's CBAM agreement.
According to Thai News Agency, Mr. Buntoon Chuijcharoen, Chairman of the Steel Industry Group of the Federation of Thai Industries (FTI), reported an increase in steel production in 2025 compared to the previous year, with a total domestic production of approximately 16 million tons and exports reaching around 1.5 million tons. This growth is attributed to an increase in exports to the European Union, as Thailand's use of electric furnaces aligns with the EU's CBAM measures aimed at reducing carbon emissions, which are set to take effect on January 1, 2026.
In 2026, production volumes are expected to remain consistent, with a positive outlook for both domestic consumption and exports. The CBAM measures are anticipated to enhance Thailand's competitiveness due to lower costs. However, challenges persist, including the United States' decision to increase import tariffs on steel, which could lead to an oversupply in domestic markets. The Thai steel industry is urged to seek additional markets, with ASEAN being a key target area.
Mr. Chuijcharoen also advised the upcoming government to recognize the steel industry's significance to national development and urged improvements in preventing unfair trade practices. He suggested that anti-circumvention measures need to be more efficient and that governance in business practices should prioritize product quality and technological development.
The association also encouraged government support for entrepreneurs to comply with the EU's CBAM measures, which may pose challenges for small businesses. Additionally, there is a call for a Thai CBAM initiative to support industrial development and reduce greenhouse gas emissions, potentially through a dedicated fund or agency.
Professor Dr. Amorn Pimanamas, President of the Thai Structural Engineers Association (TSEA), commented on the need to improve the standards for steel reinforcing bars, given the diverse forms and production methods used, including induction furnaces. He stressed the importance of reassessing safety standards, especially concerning earthquake resistance, and called for the Thai Industrial Standards Institute (TISI) to enhance its inspection and control measures.
Further discussions are ongoing regarding a letter submitted by ten Thai steel associations to the Prime Minister, urging stricter and more transparent factory permit processes. The focus is on prioritizing public safety and learning from international practices. The discussions may involve professional councils like the Council of Engineers to establish safety-focused standards.
The association remains optimistic about negotiations and discussions, emphasizing the need for comprehensive standards that consider quality, environmental impact, and public safety. The dialogue is seen as an opportunity to reflect on various perspectives, integrating engineering, economic, and environmental considerations to ensure safe and sustainable steel production in Thailand.