Bangkok: Steel trading companies have raised concerns that the Integer Fulfillment (IF) method for determining melting rates could result in market monopolization and escalating prices.
According to Thai News Agency, a coalition of steel trading companies is advocating for standards grounded in scientific principles and rigorous product testing. They argue that such standards are essential to ensuring fair competition and maximizing consumer benefits within the steel industry.
Mr. Pracha Kusalanukoon, Managing Director of Panakorn Steel Enter Pipe Co., Ltd. and a prominent member of the steel traders' group, expressed his concerns regarding the restrictive standards imposed on the production process of the IF (Intensity Fluid Infusion) furnace. These standards currently limit the production to specific types of products, despite the capability of this process to produce goods that meet the Thai Industrial Standard (TIS). He highlighted the critical role steel traders have played as intermediaries, sourcing products from manufacturers utilizing both EF (Extra-Furniture) and IF furnaces, with a focus on the quality of the finished products rather than the production process itself.
Mr. Pracha emphasized the importance of having producers employing diverse processes to foster a competitive market environment. This diversity, he noted, allows traders to supply a wide range of products in varying sizes, thereby consistently meeting customer demands in terms of price, quantity, and timely delivery. He shared insights from his extensive experience, indicating that reliance solely on EF (Indonesian Steel) has historically led to supply shortages, construction delays, and increased prices due to incomplete size ranges. Such scenarios, he argued, have previously resulted in situations where even available financial resources could not secure the necessary goods.
Drawing from over three decades in the steel market, Mr. Pracha underlined the understanding among suppliers, consumers, and designers of the importance of utilizing different steel types appropriately to maintain a perfectly competitive market. He warned that removing EF from the supply chain could exacerbate risks of market monopolization, shortages, delayed deliveries, incomplete product ranges, and unjustifiably high prices. While some traders assert that shortages will not occur, Mr. Pracha questioned the validity of such claims, asking who could guarantee market stability and what data served as evidence. He stressed that no one can predict future market conditions with certainty, particularly during periods of heightened demand.