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FRIDAY, December 09, 2022
Steel bar-makers to seek government nod for price hike

Steel bar-makers to seek government nod for price hike

MONDAY, September 19, 2022

Manufacturers of steel bars are planning to approach the Thai government and seek its permission to raise prices as production costs have been rising.

Prawit Horrungruang, an adviser to the steel bar manufacturers’ association, said that the steel used to make the bars has seen a 42-per-cent price hike from last year, while the manufacturers are also facing rising costs of electricity, transportation and wages.

Prawit said the steel raw material required for making bars now sells at about US$658 (24,300 baht) per tonne, compared to $464 last year.

The rising power bill also added another 700 to 800 baht to the cost of making one tonne of steel bars, Prawit added.

He said the manufacturers would not survive without raising the prices but they need to first receive approval from the Internal Trade Department as steel bars and other steel products’ prices are under the control of the department.

He added that the rising cost of energy has affected steel prices worldwide. For example, manufacturers in Turkey have announced price hikes of $20 to $40 per tonne.

Prawit said the prices of steel bars in Thailand were lower than those in other countries. For example, steel bars in Singapore are priced at $738 per tonne, at $740 in Turkey and at $852 in China while it sells at $699 in Thailand.

Prawit also advised construction firms to use higher-grade steel bars to save cost. He said although the higher-grade bars were more expensive, construction firms would save money as they would need to use lesser quantities of the bars.