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Thai Steel Producer to Run at Top Capacity, Expects Gains.
Byline: Nareerat Wiriaypong
Aug. 5--Cold-rolled steel producer Siam United Steel (SUS) is confident of reaching its maximum capacity of 900,000 tonnes this year with rising profit despite unfavourable conditions in both domestic and export markets.
Tsutomu Yamada, president of SUS, which is 36 percent owned by Nippon Steel of Japan, said exports to China had seriously suffered as a result of the Sars outbreak in the second quarter when manufacturers there adjusted inventories. However, weak demand in China, SUS' largest export market, is expected to recover soon, probably in September.
Exports to other key markets, including Asean nations, are expected to rise in line with their improving economies.
"So, we expect overall export would be a little bit higher than last year," Mr Yamada said.
In the domestic market, Mr Yamada said demand would not grow as much as last year when a number of construction projects commenced.
"We don't see a strong tendency as we saw last year but could grow in accordance with the GDP (gross domestic product) growth which is projected at 5 percent this year," he said.
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