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Published on October 11, 2007

Sittichai Leeswadtrakul, managing director, said yesterday that global steel prices remained high and were likely to stay at this level for a while or climb even higher.

Economic growth, particularly in Asia and Europe, has boosted global demand for steel. Sittichai believes the steel industry in Thailand also has strong potential to grow as the government has recently approved two large mass-transit projects, which should help other relevant industries and the property sector to grow significantly. There would be more investment in property projects along mass-transit routes.

In addition, the economies of neighbouring countries including Vietnam and Laos have grown rapidly and this is increasing demand for steel. Foreign direct investment has

also significantly increased, including expansion in ecocar production.

Sittichai said the general election would lift the confidence of local and foreign investors towards the new elected government.

However, the economic growth of China is a key indication of global demand for steel. He said estimates indicated that China's demand for steel, which represents 35 per cent of world demand, would grow by 11.5 per cent next year in line with GDP growth of 11.4 per cent this year.

"After being volatile for a while, steel prices rose to a high level. The company has been growing well over the past year boosted by external factors," Sittichai said.

He added that his company had submitted a filing to the Securities and Exchange Commission to list Millcon on the MAI and expected to list on the market in November.

As of March 31, Millcon's paid-up capital was Bt300 million with assets of around Bt1.77 billion and production capacity of around 500,000 tonnes per year.

Several companies manufacture similar products to Millcon, including Asia Metal, Thai Metal Trade, Rich Asia Steel and Thai Yuan Metal.

Siriporn Chanjindamanee

The Nation