Thailand cuts import quota for Japanese steel

BANGKOK, December 22 (TNA) - Thailand has slashed an import quota for Japanese steel, under the Japan–Thailand Economic Partnership Agreement (JTEPA), to 530,000 tonnes in 2015 to reduce excess supply on the domestic market. Udom Wongwiwatchai, Director of the Office of Industrial Economics, under the Thai Ministry of Industry, told reporters on Monday that the decision was made at a meeting of a committee tasked with handling Thailand’s quota of iron and steel imports from Japan under JTEPA, which is under the supervision of the Thai Ministry of Commerce. Based on the panel's resolution, Udom said, Thailand’s imported hot rolled steel sheets from Japan will be reduced to 530,000 tonnes next year, from over 10 million tonnes in 2011. Udom explained that the move was in response to lower demand for iron and steel in Thai industries, at only 16.9 million tonnes this year, especially in the local automobile industry, in which demand for steel has dropped in line with lower production of vehicles at less than two million units, from 2.7 million units as earlier targeted. Udom stated, however, Thailand's iron and steel import quota for Japan will be reviewed in mid-2015 to be comparable on par with actual demand. According to the official, Thailand’s demand for iron and steel is expected to increase to 17.41 million tonnes next year, most of which will be imported, while domestic iron and steel production is expected at about six million tonnes. (TNA)