Posted on 16 Jan 2009
Domestic steel producers claimed that due to the economic slowdown, customers have stopped buying steel products, resulting in stock level to reach two million tonnes. Hence, they have to reduce production to 30-40% of normal level.
Mr Payungsak Chartsutipol, President of Iron and Steel Industry Club, The Federation of Thai Industries (FTI) said “due to economic slowdown, steel inventory level went up to reach two million tonnes. As a result, some of the steel producers have to stop producing while others reduce production to 30-40% of previous level in order to control stock build-up. The situation is even more serious when compared to what happened in 1997. Even though the financial situation in 1997 was critical, the demand was still healthy, especially in the global market. However, in the current situation steel demand dropped significantly not only in
“I accepted that in the first quarter of 2009 steel producers have not come up with a concrete plan to cope with the situation. They are waiting to see what is going to happen to
Mr. Korakod Padungjit, a committee member of the same steel industry group, said “stock level in the country registered 2 million tonnes. Due to economic woes within the country and in the world, the market is very quiet and down.” He noted that steel consumption in
