Thailand’s Carbon Steel Pipe Market Sees Steady Demand Growth, Driven by Infrastructure and Manufacturing

Bangkok, May 2025 – Carbon steel pipes, a core material in the industrial and construction sectors, are witnessing a new wave of demand growth as Thailand’s infrastructure is upgraded and the manufacturing sector recovers. Government investments, expansion of energy projects, and booming export-oriented industries are combining to fuel the boom in the carbon steel pipe market.

Key drivers of market growth

1. Acceleration of large-scale infrastructure projects:

– As the Thai government continues to push forward the construction of transportation networks, including high-speed railroads, port expansion and industrial zone development in the Eastern Economic Corridor (EEC), carbon steel pipes are widely used in structural support, piping systems and municipal projects.

– Upgrading of utilities such as urban water supply and wastewater treatment has also driven the demand for carbon steel pipes, especially in pressure and corrosion resistant application scenarios.

2. Strong demand from energy and petrochemical industries:

– As an important energy hub in Southeast Asia, Thailand’s oil, gas, and renewable energy projects (e.g., LNG terminals, solar power plants) continue to increase, and carbon steel pipes are indispensable in the areas of transportation pipelines and pressure vessels.

– Expansion plans of local petrochemical giants (e.g. PTT Group) have further boosted the procurement demand for high-quality carbon steel pipes.

3. Recovery of automobile and machinery manufacturing industry:

– Thailand is an important global automobile production base, and carbon steel pipes are widely used in the manufacture of body frames, exhaust systems and components. As the transition to electric vehicles accelerates, demand for high-strength and lightweight carbon steel pipes is on the rise.

– Export growth in the machinery manufacturing and metal processing sectors (e.g., air conditioners, agricultural equipment) is also supporting carbon steel pipe consumption.

Strengthening of the local supply chain & reduced import dependency

Thailand’s carbon steel pipe industry is gradually improving its self-sufficiency, with local companies such as Sahaviriya Steel Industries (SSI) and TPCO (Thai Pipe Company Limited)expanding their production capacity through technological upgrades and reducing their dependence on imported products. Meanwhile, carbon steel pipe suppliers from China and Japan still hold the high-end market share, but the trend of localized production is obvious.

Challenges and Future Opportunities

Raw material cost fluctuations: Fluctuations in international iron ore and coking coal prices affect profit margins, and companies cope with risks through long-term contracts and efficiency optimization.

– Tightening environmental regulations: Thailand’s Ministry of Industry promotes green manufacturing standards, and carbon steel pipe companies need to focus on low-carbon production processes (e.g. electric arc furnace technology) and recycling.

– Regional Export Potential: With the advantages of the ASEAN Free Trade Agreement, Thailand’s carbon steel pipe exports to neighboring countries such as Vietnam and Myanmar have continued to grow, and are expected to grow at an average annual rate of 6%-8% over the next three years.

Market Outlook: Driven by both infrastructure investment and manufacturing upgrades, Thailand’s carbon steel pipe market is expected to maintain an average annual growth rate of 5%-7%, with demand for higher-end products (e.g., API-standard line pipe) being particularly prominent.