The ongoing border conflict between Thailand and Cambodia, which has entered its 18th day as of December 24, continues to escalate, with casualties and over 500,000 residents forced to evacuate. The military clashes, spanning across 13 fronts, have raised concerns over the potential impacts on steel demand, drawing attention to Thailand's structural issues in its steel industry.

Thailand's steel production has been steadily declining, with a 1.17% decrease in crude steel output in 2024, totaling 4.9 million tons. The country remains heavily reliant on imported raw materials such as iron ore and scrap steel, due to limited domestic resources. The steel sector's structure also suffers from an imbalance, with an overcapacity in intermediate production and a weak upstream and downstream sector.

With the geopolitical risks rising, the Thai steel industry faces numerous challenges, including raw material dependency, imbalanced production capacity, and demand fluctuations. The industry's resilience in navigating this uncertain environment will be a key focus for the market moving forward.