According to Mr B Muthuraman MD of TATA Steel Limited, it is seeking more investment opportunities in Thailand both in the steel and automotive sectors. It has been encouraged by the steady increase in hot rolled steel prices to USD 540 per tonne today from USD 400 in April.
Mr Muthuraman last week said that “The global steel market contracted by 22% in the H1 of 2009, after declining 1.2% in 2008, but it is expected to recover gradually in the H2 to finish the year with 15% contraction. In the Thai market, the H1 contraction was 30% with a full year projection of 17%.
Mr Muthuraman on the sidelines of the shareholders meeting of TATA Steel (Thailand) Plc in Bangkok said "But we believe that the economy and the industry will see some improvements in the third quarter onward. Thailand still has attractive business conditions and we will definitely invest more in Thailand after the economy improves."
He said “TSTH would open its THB 3.8 billion mini blast furnace, the first of its kind in Southeast Asia, on schedule next month with the capacity to produce 500,000 tonne of semi finished products such as billet and pig iron.”
The upstream steel facility will enable TSTH to trim production costs amid volatile raw material prices and be more competitive in export markets including India.
Mr Santi Charnkorawee president of TSTH said “It aimed to produce 1.1 million tonne of wire rods and rebar this year, on par with last year, about 10% of which would be exported mainly to neighboring countries. We are awaiting a license to export to southern India where supply is still short of demand."
Mr Santi said “The government's planned rail projects, for which construction is expected to start late this year, would consume about 100,000 tonne. The government's mega project scheme would actually drive domestic steel demand to rise from next year onward."
He said “Prices of steel bar peaked at THB 35,000 per tonne in June last year before falling sharply, though they have since recovered to around THB 17,000 to THB 18,000.”
(Sourced from http://www.steelguru.com/news/index/2009/07/27/MTAzOTA3/TATA_Steel_looking_for_opportunities_to_invest_in_Thailand.html)
Sunday, July 26, 2009
TATA Steel looking for opportunities to invest in Thailand
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