Steel price increase causes cost of automaking to increase

Steel price increase causes cost of automaking to increase

According to the recent news in Thailand market, it is expected that price increase in steel will cost local automotive industry Baht (Thailand currency)700 million ($17.1 million) for year. However, it is not certain that automakers will declare a price increase in vehicles. Assuming that 300-400 kilogrammes of steel, including hot rolled, cold rolled and stainless types of steel are used in the production of each automobile, it is estimated that the production cost of each vehicle will increase by Baht1000 ($24.5). It is also stated that, due to increase in costs of raw materials, price of hot rolled steel has increased Baht 2 per kilogramme, cold rolled steel has increased Baht 3 and stainless steel has increased Baht 10 per kilogramme.