SET-listed Millcon Steel, a Thai steel manufacturer, is taking advantage of the weaker baht by planning to increase steel exports by 30% this year, especially to Australia and islands in the Pacific.
The company believes domestic sales of steel will be fuelled by the growth of the electric vehicle (EV) industry.
The baht's depreciation is driven by expectations that the US Federal Reserve will accelerate monetary policy tightening as well as concerns over a global economic slowdown, according to analysts.
The baht stood at 36.69 against the US dollar on July 15.
Given the weaker baht, Millcon plans to increase steel exports by 30% to around 30,000 tonnes, said chief executive Pravit Horungruang.
"Foreign countries mostly want steel bars for construction projects," he said.
The export sector is a key economic engine for Thailand, which is battling against the double whammy of the pandemic and the global oil price surge, driven by the Russia-Ukraine war.
The Joint Standing Committee on Commerce, Industry and Banking earlier this month made its forecast for the Thai export sector in 2022, believing it would grow by 5-7%, up from 3-5%.
Millcon expects its revenue in 2022 to reach a target of 20 billion baht, with up to 900,000 tonnes of steel products sold.
During the first half of the year, the company benefited from the weaker baht and the recovery of the automotive industry, which boosted steel demand.
Car manufacturing usually requires steel products such as cold-rolled coil and premium steel.
Millcon's earlier decision to form a joint venture, Kobelco Millcon Steel Co (KMS), with Japan-based Kobe Steel Co has made KMS a key steel supplier for global car makers in Thailand.
KMS has a production capacity of 400,000 tonnes a year.
Millcon said state infrastructure development projects also helped the domestic steel industry.
The company is contracted to supply steel to the Thai-Chinese high-speed train project and infrastructure projects in the Eastern Economic Corridor, said Mr Pravit.
