The Federation of Thai Industries (FTI) has put forward recommendations to address the issue of substandard steel in Thailand in the wake of the collapse of the 30-storey State Audit Office, following concerns that substandard steel played a role in the disaster.
Bantoon Juicharern, chairman of the FTI's Iron and Steel Industry Group, said that, firstly, production must adhere to strict quality standards, and regulatory oversight should be reinforced.
Consumers, he said, should be educated on selecting quality-certified products over cheaper, substandard alternatives. Additionally, imported products, such as prefabricated steel structures, of which 700,000 tonnes were imported in 2024, must undergo mandatory quality inspections.
He said enhancing transparency in quality control is among the crucial recommendations.
Measures should be implemented to track and verify steel quality from production to final use, he said. This includes stricter enforcement of industrial certification standards and traceability of steel in the marketplace.
Bantoon: Industry faces challenges
Public awareness campaigns should also educate consumers on selecting high-quality steel, he added.
The chairman said that Thailand's steel demand this year is expected to remain in the range of 16.0-16.3 million tonnes, down from the pre-Covid-19 level of 18-19 million tonnes.
He said the Thai steel industry faces significant challenges due to China's production surplus. China currently produces 1.1 billion tonnes of steel annually, with domestic demand at approximately 900 million tonnes. This leads to an excess of 200 million tonnes being exported, particularly to Thailand and other Asean countries. This influx, including substandard steel, remains a major concern.
According to the FTI, credible information also indicates that approximately 30,000 tonnes of substandard steel products have been imported, with additional shipments continuing to arrive. These products include aluminium-zinc coated steel, commonly known as SZACC. However, they have been misclassified under the tariff code for magnesium-coated steel to evade mandatory standards and anti-dumping (AD) duties.
These imports are entering Thailand through Laem Chabang Port. Mr Bantoon said legal action must follow if the Customs Department finds discrepancies between the declared and actual product classifications.
Additionally, since 2017, when the Chinese government banned steel mills utilising induction furnace technology due to environmental and quality concerns, many of those steel producers have relocated to Thailand and contributed to issues such as overcapacity, aggressive price-cutting, and, most critically, concerns over steel quality and environmental impact, he said. To tackle these challenges, he said the FTI has proposed its recommendations to enhance steel quality standards and ensure fair competition in Thailand's steel industry.
The FTI has also requested that fair competition be ensured. Domestic steel producers must be able to compete fairly against imports and relocated factories. Authorities should enforce regulations ensuring equal compliance with labour laws, environmental protection, taxation, and product quality standards for all manufacturers.
The FTI also said the government should set procurement targets to ensure that at least 50% of public sector projects use domestically manufactured steel to promote "Made in Thailand" initiatives. Expanding this policy to Public-Private Partnership projects exceeding 1 trillion baht annually would further boost the local industry and economy.
More broadly, the FTI has suggested that the government promote "green steel" development.
