Steel firm to push exports

It will also start exporting stainless steel to new foreign markets later this year, mainly Thailand's near neighbours, managing director Chairat Prasertlum said last week.

The company expects to receive orders to supply stainless steel to Burma and Vietnam, due to increasing numbers of construction projects in both countries, he said.

Thelfer's existing markets for stainless steel include countries in the Middle East and South America.

Chairat said brass ingots and stainless steel accounted for a combined 20 per cent of Thelfer's revenue.

The latest moves are aimed at offsetting falling sales of its core product, a speciality steel called electrical silicon steel. It generates 80 per cent of company revenue.

Thelfer imports electrical silicon steel from France and Germany and resells it to local manufacturers of transformers. The slowdown in both property projects and factory expansion has resulted in declining demand for electrical transformers.

In the first half of the year, Thelfer suffered a 20-per-cent drop year on year in orders for electrical silicon steel.

Falling steel prices have also placed steel traders under pressure. While speciality steel prices have dropped 20 per cent so far this year, prices for normal steel have fallen by half.

Thelfer expects full-year revenue of Bt500 million, down from Bt800 million last year.

Chairat said orders for electrical silicon steel were expected to recover next year, in line with the economic recovery.