Price cap worries Thai producers under raw material price surge threat
In line with the raw material prices, the price of steel products have been on the rise for a certain period of time, almost everywhere in the international markets. However, producers in Thailand are particularly worried about their situation as the price of slabs they use as raw materials for producing steel products have skyrocketed almost at threefold, compared to last year's price levels. Therefore the local producers are insisting on the need to lift the ceiling price of steel in order to ease the threat of shortage. As there is enough stocks to run for six months the reinforcing bars are not under the threat of shortage however same does not apply to steel sheets. The local sheet producers hesitate to import high cost raw material to produce flat products as price cap is applied to these type of products in the country. The manufacturers asked the government to lift the ceiling price to continue slab imports.The answer will come out following the meetings to be held with the Commerce Ministry who are expected to find ways to secure raw material supplies at stable prices for the manufacturers. Earlier, the ministry ordered steel manufacturers and traders to file reports on their stocks every 15 days to prevent hoarding for price speculation.