Thai Blast Furnace Project Remains Uncertain

Thai government failed to decide the pending integrated steel project including site and time frame while the government conducts the research to find the site in south and southeast of Thailand, said chairman of Iron and Steel Institute of Thailand Wikrom Vajragupta to a reporter of Japan Metal Bulletin in Tokyo on Wednesday. He said the potential site will be offered to the government in 2 months. Japanese integrated steel makers plan to construct blast furnace responding to request by the government. However, the procedure could take more time to clear hurdles including support by local community and environment preservation.

He said the government will decide the site after the offer while the site was expected to be fixed by September. The process takes longer time due to discussion with local community.

He expects the government will invest for power supply and infrastructure, which is required for the project and for development of the local economy, and the investment could be recovered by port service fee and other charges.

He said that Thai steel consumption will increase to 13.4 million tonnes at maxim in 2010 from originally outlook of 12.3 million tonnes. He said the steel consumption will increase by around 10% in 2011 when the automobile production will increase to 1.8 million units in 2011 from estimated 1.6 million units in 2010. He emphasized the country needs the integrated steel plant to meet growing demand for high valued steel products.