November 20, 2008

Thailand to maintain steel standards despite price complaints

It is reported that Thailand Industrial Standards Institute said that it will maintain the country's steel import standards in order to ensure public safety. As per report Thailand Industrial Standards Institute held two public hearings last month at which most participants said that it was better to keep high steel import standards rather than open the market wider for imported products.

Mr Pairoj Sanyadechakul secretary general of Thailand Industrial Standards Institute said that the local construction industry had been calling for eased standards in the face of sharp increases in local steel prices, as well as a shortage of raw materials, notably billet and scrap. Mr Payungsak said that "Steel standards need to be maintained as public safety needs to come first.”

However, Mr Pairoj said Thailand Industrial Standards Institute was reviewing methods to shorten steel importing procedures as it might be a way to help ease a domestic shortage. He said that "In cases where the domestic steel market faces a shortage, some temporary measures to make steel imports faster will be implemented, but this will be considered by the committee on a case-by-case basis.”

Thailand Industrial Standards Institute committee chaired by Mr Issara Chotburakarn Industry Ministry's deputy permanent secretary, concluded that high standards were needed to block the entry of low quality steel, which could contribute to lower quality of construction work or even public safety.

Steel prices have risen by 65% in the first six months of this year, along with other commodity goods for which prices are skyrocketing, driven by oil prices and a shift by big investors from stock markets to commodities. Contractors, steel importers and processed steel exporters had asked TISI to allow the imports of different grades of steel to ease supply constraints.