Japan Tries to Widen Custom Free Range for Hot Sheet in Thailand

The Federation of Thai Industries (FTI) announced the federation cooperates with Japan Chamber of Commerce, Japan (JCC) to expand custom free range for hot-rolled steel sheet imported from Japan to Thailand. The custom free range in 2008 was narrower by 28% than actual import volume. JCC required the range expansion in 2009 at a regular meeting held in July. Japanese automobile or home appliance makers in Thailand could become to procure Japanese high-grade steel sheet more smoothly. Ministry of Industry, Thailand, set the custom free range at 440,000 tonnes for 2007 along Japan-Thailand Economic Partnership Agreement (JTEPA). Actual import volume reached 627,000 tonnes through the year. The range for 2008 was set at 455,000 tonnes though the volume gap was very wide.JCC surveyed the demand for Japanese hot-rolled steel sheet from major users and large dealers in Thailand in November 2007 and May 2008. They estimated the domestic demand at above 700,000 tonnes through 2008. The import amount was 230,000 tonnes for January-April 2008. The annual import could total 690,000 tonnes at the current pace. There is a wide gap between the custom free range and the actual imports.Thai government keeps a cautious stance against the expansion of the custom free range to protect conserve domestic industries. JCC explained Japanese steel sheets don’t impact Thai companies since the imports are limited in high-grade products just for Japanese users. If Japanese companies’ international competition power is weakened by higher purchase costs, Thai economy might be rather impacted, said JCC.