Asean steel makers expect regional steel and iron consumption will grow by more than 8% this year from 70 million tonnes in 2014 on the back of government infrastructure projects.
Wikrom Wajracupta, chairman of the Asean Iron and Steel Council (AISC), yesterday said infrastructure investment in Indonesia, Vietnam and the Philippines should help to boost construction demand.
"We expect to see substantial economic growth in neighbouring countries, unlike our own economy, which the government estimates will grow by 4%. Several risks lie ahead for the Thai economy," he said.
Mr Wikrom said Thai steel consumption totalled 15 million tonnes last year, down from 17 million in 2013, as the construction industry was hurt by political unrest.
Steel demand in Malaysia, the Philippines, Vietnam, Indonesia and Singapore remained intact at an average of 11-12 million tonnes.
The AISC will revise its Thai steel demand outlook for this year at its meeting next month, Mr Wikrom said.
Mr Wikrom said the council was in talks with the Chinese government to raise concerns about cheap steel from Beijing being dumped in the Asean market, hurting Asean steel producers.
"We're worried about cheap, low-quality steel from China as well as some Chinese businesses moving their production bases to Asean members, as their low-quality machinery will hurt the environment," he said.
The Chinese government is tightening regulations to get rid of low-quality steel products in order to upgrade its industry at home, causing some steel makers to flee to Asean. The region's steel producers are worried they cannot compete with cheaper steel from China.
The AISC said Asean consumed 70 million tonnes of steel last year. Of this, 40 million tonnes were imported, with China shipping 15 million tonnes to Asean.