Cheap Steel Could Cause Collapses: Thailand

[webfact]

Cheap steel could cause collapses

PIYANUCH THAMNUKASETCHAI

THE NATION

SAMUT PRAKAN: -- A recent raid on a steel mill in Samut Prakan has found that it has produced substandard steel from scrap metals since 1990 - which could have resulted in structural damage or the collapse of buildings, the Thai Industrial Standards Institute (TISI) said yesterday.

Such steel is popular among contractors and construction companies who prefer to buy cheap materials from the mill Wai Wing Co, which is owned by Taiwanese businessman Kevin Lor.

The registered mill allegedly produces steel from scrap metal bought from dealers or scavengers, according to secretary-general Chaiyong Krittiphol. However, he said, the plant could not be immediately forced to close before the case is considered and approved by the Department of Industrial Works.

A recent raid on the mill by the Department of Special Investigation (DSI) found nothing suspicious at first, but after a thorough search of the 15-rai compound, agents allegedly found a walled-in facility that was blocked by several trucks.

Upon entering the facility, they claim that they found more than 100 tonnes of steel rods - 133,600 in total and worth Bt27 million - made of scrap metal ready for shipment. A TISI test later found the rods broke easily, failing a standard test for construction materials.

Interviewed by DSI, Lor said his plant produced standard steel rods but had trouble selling them. Contractors and construction firms preferred the cheaper substandard steel, prompting him to turn to scrap metal products.

The DSI also inspected two other steel mills in the province but found nothing illegal. There are allegedly 18 mills producing cheap steel in Thailand under DSI's watch, he said.

-- The Nation 2012-02-08

[Naam]

A TISI test later found the rods broke easily, failing a standard test for construction materials.

= load of crap to BS ignorants!

[terryq]

which is owned by Taiwanese businessman Kevin Lor.

.

Now awaiting the follow up....

"Foreigners causing problems to Thai construction industry by selling inferior steel"

Well, you would not get Thai companies doing anything like that.

[noitom]

It would be an interesting and scary reference point to know which commercial and residential buildings used these steel components and others like it from other factories. There must be hundreds and thousands of contractors who "buy smart" at the expense of safety, standards. There must be hundreds of Thai manufacturers who "cave in" to the demands of contractors for "cheaper" product.

In the Thai system of corruption and graft, "legitimate" inspection, standards, and safety are not even in the vernacular. It's preposterous how Thai companies "show off" their ISO9K certificates with big building signware and "framed certificates" in the boardroom. What's also preposterous is the "inconsequential" tone of the news writing of the Nation as if it was a typically accepted fact of life in the manufacturing business. If The Nation doesn't expect to make an investigative journalism piece out of it which it should, why publish it at all?

[FOODLOVER]

Has this companies steel been used in any high rises in Bangkok?

[Soutpeel]

"produced substandard steel from scrap metals"

Actually all steel has a certain amount of scap metal in it, this is added during the melting process, this is same the world over.....this story smells of scam cooked up to elminate competion.

Further good engineering practice dictates that the purchaser should conduct his own due dilligence on any materials bought, ie review of test certificates, metallurgical analysis,(if so required) heat certificates etc to ensure you are getting what you asked for.

Further purchase orders should specify exactly what the purchaser requires, if they dont...cant blame the supplier, if it turns out they get something they didnt want or is not fit for purpose...!!!

This piece lacks a lot of detail of how TISI came to the conclusion the material supplied was "sub-standard" what is this based on ?....which standards etc etc...

Edited February 8, 2012 by Soutpeel

[janverbeem]

Thailand,the Somalia of Asia.

[janverbeem]

"produced substandard steel from scrap metals"

Actually all steel has a certain amount of scap metal in it, this is added during the melting process, this is same the world over.....this story smells of scam cooked up to elminate competion.

Further good engineering practice dictates that the purchaser should conduct his own due dilligence on any materials bought, ie review of test certificates, metallurgical analysis,(if so required) heat certificates etc.

Further purchase orders should specify exactly what the purchaser requires, if they dont...cant blame the supplier, if it turns out they get something they didnt want or is not fit for purpose...!!!

This piece lacks a lot of detail of how TISI came to the conclusion the material supplied was "sub-standard" what is this based on ?....which standards etc etc...

But I guess that there is a difference to " a cetain amount of scrap steel added" to " produced from scrap steel".

What I understand that steel that gets reheated loses his flexibility,hence the report of TSI that the test revealed the bars broke easily.

[Ricardo]

Hope that no sub-standard steel was used in building dams !

[Soutpeel]

What I understand that steel that gets reheated loses his flexibility,hence the report of TSI that the test revealed the bars broke easily.

Re-heating steel actually increases "flexibility"....the bars broken "easliy" is a relatiave term, and actually the term means nothing in its self...it broken easily compared to what a piece of chalk or a match stick ?..What ?...different types of steel rebar have different specified tensile strengths for different applications.

The TSI explanation is a very simplist view on something which can be quite complicated, could be related to carbon content, how the material was cooled,processed, any heat treatment or a whole host of other parameters.

There is too little detail in the report to comment any further..

Edited February 8, 2012 by Soutpeel

[Soutpeel]

Hope that no sub-standard steel was used in building dams !

Pretty sure a few "dead body's" also helped build the dam as well.. LOL

[jalansanitwong]

There was a story on CNN showing a Chinese building that had collapsed and pieces of wire about same gauge as coat hanger wire were protruding from the crumbled concrete. Obviously they werent familiar with re-bar.

Dont buy hise property in Thailand.Theyre importing alot of cheap cement from Cambodia. The really good stuff is exported. Same old story.

[Soutpeel]

There was a story on CNN showing a Chinese building that had collapsed and pieces of wire about same gauge as coat hanger wire were protruding from the crumbled concrete. Obviously they werent familiar with re-bar.

Dont buy hise property in Thailand.Theyre importing alot of cheap cement from Cambodia. The really good stuff is exported. Same old story.

Who is to say the "piece of wire" was rebar ?..."coat hanger" gauge wire is used in pre-stressed building components such a beams and lintels and in rebar cages, you would expect to see this sort of thing in a building

[jaltsc]

Stop complaining! Here, up north, they are still using sub-standard bamboo for construction of bridges. Half a baht cheaper per tonne than the good stuff.

Edited February 8, 2012 by jaltsc

[smedly]

I think we should be thankfull that steel is actually included in contruction at all

[wintermute]

The only thing considered noteworthy about this article is that Mr. Lor failed to sufficiently pay his tea money to the satisfaction of the pigs up top.

[Soutpeel]

The only thing considered noteworthy about this article is that Mr. Lor failed to sufficiently pay his tea money to the satisfaction of the pigs up top.

How very true...

[1bbcd5]

I agree with the author's point of view! I learned a lot. Thank you!

[Soutpeel]

"100 tonnes of steel rods - 133,600 in total and worth Bt27 million"

By my poor mathamatical reckoning skills.....do we think there is some over valuing of this stock going, I stand to be corrected..but wouldnt this be around US$ 8k/tonne ?

in comparaison with a few numbers pulled up on the internet --

Hot Rolled Steel Coil – $694 per tonne

Hot Rolled Steel Plate – $808 per tonne

Cold Rolled Steel Coil – $789 per tonne

Steel Wire Rod – $683 per tonne

Medium Steel Sections – $795 per tonne

Based on this,Thailand seems to produce some of the most expensive steel in the world !!!

Edited February 8, 2012 by Soutpeel

[noitom]

"100 tonnes of steel rods - 133,600 in total and worth Bt27 million"

By my poor mathamatical reckoning skills.....do we think there is some over valuing of this stock going, I stand to be corrected..but wouldnt this be around US$ 8k/tonne ?

in comparaison with a few numbers pulled up on the internet --

Hot Rolled Steel Coil – $694 per tonne

Hot Rolled Steel Plate – $808 per tonne

Cold Rolled Steel Coil – $789 per tonne

Steel Wire Rod – $683 per tonne

Medium Steel Sections – $795 per tonne

Based on this,Thailand seems to produce some of the most expensive steel in the world !!!

It's a good point - how the costing for the article was done. Did the reporter calculate of the price of "authentic" steel rods or the "scrap" made by this factory?

[Soutpeel]

"100 tonnes of steel rods - 133,600 in total and worth Bt27 million"

By my poor mathamatical reckoning skills.....do we think there is some over valuing of this stock going, I stand to be corrected..but wouldnt this be around US$ 8k/tonne ?

in comparaison with a few numbers pulled up on the internet --

Hot Rolled Steel Coil – $694 per tonne

Hot Rolled Steel Plate – $808 per tonne

Cold Rolled Steel Coil – $789 per tonne

Steel Wire Rod – $683 per tonne

Medium Steel Sections – $795 per tonne

Based on this,Thailand seems to produce some of the most expensive steel in the world !!!

It's a good point - how the costing for the article was done. Did the reporter calculate of the price of "authentic" steel rods or the "scrap" made by this factory?

Or maybe they just pulled the number out their bottoms because it makes good copy

[trainman34014]

The only thing considered noteworthy about this article is that Mr. Lor failed to sufficiently pay his tea money to the satisfaction of the pigs up top.

Agreed; and as soon as that is rectified no further action will occur other than his business returning to normal.

[KeyserSoze01]

this story smells of scam cooked up to elminate competion.

It is interesting that they singled out Mr. Lor for this article as the owner of 1 of 18 mills suspected of producing steel that is not up to spec. I wonder who owns the other 17 mills?

Edited February 8, 2012 by KeyserSoze01

[webfact]

Special Investigators Confiscate Substandard Steel Bars

SAMUT PRAKARN: -- The Department of Special Investigation, or DSI, has seized tons of substandard steel bars from a Taiwanese-owned plant in Samutprakan Province.

DSI Director-General Tharit Pengdit, led his staff in the raid of a steel plant in Samut Prakan's Phra Samut Chedi District after being that informed the plant uses substandard materials for its production. They confiscated a significant amount of sub-standard steel bars arranged for deliveries to dealers.

Investigators stated that the plant uses iron scrap and metal waste to produce steel bars for concrete floor-making and other building structures. The plant also stocks thousands of tons of iron scrap, a steel rolling machine, and a melting furnace.

Investigators said the plant is operated by a Taiwanese national. They assume the use of unqualified materials is intended to avoid importing expensive materials from overseas. The operator of the plant is charged with producing and distributing substandard steelworks.

-- Tan Network 2012-02-08

[ding]

People complain about building inspectors... until the smelly stuff hits the fan.

The rebar I've seen going into foundations has been a joke. I can't keep from commenting everytime I see bundles of the scrawny stuff.

Edited February 8, 2012 by ding

[cloudhopper]

People complain about building inspectors... until the smelly stuff hits the fan.

The rebar I've seen going into foundations has been a joke. I can't keep from commenting everytime I see bundles of the scrawny stuff.

They have building inspectors here? None ever dropped by to inspect any of my projects. I can't comment on the quality of the steel but I've sure seen lots of smooth rebar going where it should be ribbed.

[bangkapi]

It would be an interesting and scary reference point to know which commercial and residential buildings used these steel components and others like it from other factories. There must be hundreds and thousands of contractors who "buy smart" at the expense of safety, standards. There must be hundreds of Thai manufacturers who "cave in" to the demands of contractors for "cheaper" product.

In the Thai system of corruption and graft, "legitimate" inspection, standards, and safety are not even in the vernacular. It's preposterous how Thai companies "show off" their ISO9K certificates with big building signware and "framed certificates" in the boardroom. What's also preposterous is the "inconsequential" tone of the news writing of the Nation as if it was a typically accepted fact of life in the manufacturing business. If The Nation doesn't expect to make an investigative journalism piece out of it which it should, why publish it at all?

One only needs to look at the escalators at Siam BTS to know how Thai big shots make decisions about spending money... The foreign consultants insisted on wider escalators during the planning stages, but to save money the consultants' advice was overridden and we have the "sardine tin walk" on a daily basis.

[Soutpeel]

Special Investigators Confiscate Substandard Steel Bars

SAMUT PRAKARN: -- The Department of Special Investigation, or DSI, has seized tons of substandard steel bars from a Taiwanese-owned plant in Samutprakan Province.

DSI Director-General Tharit Pengdit, led his staff in the raid of a steel plant in Samut Prakan's Phra Samut Chedi District after being that informed the plant uses substandard materials for its production. They confiscated a significant amount of sub-standard steel bars arranged for deliveries to dealers.

Investigators stated that the plant uses iron scrap and metal waste to produce steel bars for concrete floor-making and other building structures. The plant also stocks thousands of tons of iron scrap, a steel rolling machine, and a melting furnace.

Investigators said the plant is operated by a Taiwanese national. They assume the use of unqualified materials is intended to avoid importing expensive materials from overseas. The operator of the plant is charged with producing and distributing substandard steelworks.

-- Tan Network 2012-02-08

Lots of sweeping statements in this article...scap iron is used for producing new steel products and on what basis are they saying the steel is sub-standard " The rod's broke easily"....

Quite curious as to what the "expensive imported materials" are ?

More and more this sounds like a set up to stifle the competion..

[anterian]

What I understand that steel that gets reheated loses his flexibility,hence the report of TSI that the test revealed the bars broke easily.

Re-heating steel actually increases "flexibility"....the bars broken "easliy" is a relatiave term, and actually the term means nothing in its self...it broken easily compared to what a piece of chalk or a match stick ?..What ?...different types of steel rebar have different specified tensile strengths for different applications.

The TSI explanation is a very simplist view on something which can be quite complicated, could be related to carbon content, how the material was cooled,processed, any heat treatment or a whole host of other parameters.

There is too little detail in the report to comment any further..

"There is too little detail in the report to comment any further.. " Exactly!

[Ijustwannateach]

Yes... if this were a 'real' news article there would be something called an 'investigation' led by 'police' and 'safety inspectors'. Of course, since this has apparently been going on since 1990, it would have happened earlier, and then we would be hearing about which buildings were made from the bad steel, so that lawsuits could begin.

But.....