The fuel tariff increase has caused steel producers' power bills to rise by about 50%, said Pravit Horrungruang, adviser to the EAF Long Product Steel Producers Association.

Illustrative image. (Photo: VNA)

"Many companies want to increase the prices of their steel products in accordance with the higher costs of raw materials, energy, logistics and wages in order to remain competitive or survive in business," Pravit was quoted by the newspaper as saying.

In Thailand, prices of steel products, especially steel bars which are used in construction, are regulated by the Ministry of Commerce.

Many countries, such as Turkey, have recently announced an increase in steel prices of 20-40 USD per tonne, according to the association.

The price of steel rebars in Thailand currently stands at 699 USD per tonne, which is lower than 738 USD per tonne in Singapore,740 USD per tonne in Turkey, and 852 per tonne in China, it said.

The association said the price of steel scrap in the global market is around 658 USD per tonne this year, up 42% compared to 464 USD per tonne in 2021.

Pravit said that the construction sector should sign long-term contracts with steel manufacturers to avoid price fluctuations, adding that if energy cost is added to the price, the price of steel will rise to 700-800 USD per tonne.