August 5 MetalBiz--Weigong, the principal of the steel agency in Thailand inquired the four companies which once intend to invest the upstream steel project in Thailand, including Japan JFE, Nippon Steel, China' s Baosteel and ArcelorMittal. They all disclosed they will continue investing after the economy recovery.
Weigong revealed that the total investment in the upstream steel project reached 150bln baht, thereinto, 15bln baht will spend on the implementation of infrastructure project, and the remaining will be used for investment in other related industries, such as power plants and deep-water wharf, which can bring long-term benefits forpeople.
Weigong pointed out that the agency is studying the details of sites and will communicate with the locals, as well as intend to carry out the investigation in southern and western regions before October this year. It is reported that the current HRC prices have increased to U.S.$500-600 per ton from U.S.$300 per ton in the early of this year, but still lower than the high record of U.S.$1,000 per ton, and it is expected to recover in Q4.
Weigong said that the steel demand reduced from 13mln tons to 10mln tons resulted from financial crisis, thereinto, 4mln tons around in H1 and more than 5mln tons in H2. The H2 steel price is expected to raise, theglobal economy recover and the market demand improve.
Although the current steel demand has increased, the manufacturers who stopped production before are still lack of confidence and haven't resumed production immediately. Weigong added that with the recovery of economy in H2, the demand in the automobile industry will be increased and it is estimated that Q4 steel price will hike to U.S.$600-650 per ton.