SCT, the international trading arm of Siam Cement Group, Thailand’s largest industrial conglomerate, expects revenue from its coal business this year to be almost the same as last year, at Bt10bn, because major customers have slowed their orders.
However, its profit this year is expected to be higher than last year due to the high margin from small customers. The number of small clients this year has increased by 30 per cent from last year.
Kalin Sarasin, managing director of SCT, said that small customers who are in the food and cloth-dye industries want quality coal because they are concerned over the environment, adding that clean coal helps manufacturers deal with their communities.
"Our steam coal has high quality, and the increase in small clients should offset the declining volume from major clients. Moreover, the price of coal sold to the Philippines, Cambodia and Vietnam is not down by much," he said.
Kalin said SCT’s sales volume this year might be 3Mt, down from 3.5Mt last year.