Posted on 16 Oct 2008
Traders will have to reduce the retail price of steel in line with the declining price in the world market, a government panel said yesterday.
The subcommittee to consider steel prices yesterday agreed to recommend lowering the price for another round by Bt14,000 a tonne.
Vatchari Vimooktayon, deputy director-general of the Internal Trade Department, said after yesterday's meeting that the world price of steel had been declining steadily.
However, the department has allowed steel traders to bring down retail prices in two periods, in the second half of October and in early November.
The reduction should be Bt7,000 per tonne.
From November 1, steel rod should be quoted at Bt28,250 per tonne and steel plates at Bt30,000 to Bt32,000 per tonne.
"The world steel price is on a downward trend and since July this year has dropped by Bt14 per kilogramme or Bt14,000 per tonne," she said.
As a result, the ministry must adjust the recommendation price to reflect the real cost.
It will also protect consumers from unfair price practices.
The department said steel price is going down because of two factors - declining oil prices and the global financial meltdown.
Consequently, the world's steel demand has dropped in line with these factors.
So far, steel cost for consumers has dropped by 50 per cent - for instance, billet price is quoted at US$660 (Bt22,500) per tonne, down from a previous price of $1,250.
Vatchari said steel prices would further drop, in keeping with the global economic slowdown and lower demand.
However, some steelmakers have controlled supply by reducing their production capacity to stabilise prices.
