Thailand’s steel industry has announced that prices across all product categories are expected to increase by 10-15 percent in April, as producers respond to rising cost pressures linked to global market volatility, according to Thai media reports.
Industry representatives indicated that a second round of price increases could follow in May if energy and logistics costs continue to escalate.
Cost pressures drive pricing adjustments
Producers had previously attempted to absorb rising costs, but the cumulative impact across the supply chain has made this approach unsustainable.
According to Nava Chantanasurakon, vice chairman of the Federation of Thai Industries, the price adjustments will apply broadly across all steel products.
Import dependence amplifies impact
Thailand’s steel sector remains highly dependent on imported raw materials, particularly scrap, due to the absence of domestic iron ore resources.
This structural reliance exposes producers to fluctuations in global energy prices, freight rates and raw material costs, which are quickly reflected in domestic production expenses.
Multiple cost drivers intensify pressure
Steel producers are currently facing four key cost pressures: higher transportation costs linked to rising energy prices, increased fuel costs in production, elevated freight rates amid global shipping volatility and a projected increase in electricity prices. These combined factors have pushed the industry toward unavoidable price increases.
Calls for trade protection measures
In response, the industry is calling for antidumping measures and stronger government support to help maintain competitiveness in the domestic market. Producers argue that additional protection may be necessary to offset the impact of rising costs and external market pressures.
Despite the challenging cost environment, no layoffs have been announced, as ongoing government infrastructure projects continue to support domestic steel demand and production levels. The scale and timing of any further price increases in May will depend on how cost pressures evolve in the coming weeks.