Small and medium-sized property developers will ask the military regime to help control steel prices after the local cost of structural steel jumped with the imposition of higher tariffs.
A worker moves steel rods at a Bangkok construction site. Developers are concerned about rising steel prices after tariffs were raised in late May. PATIPAT JANTHONG
"The domestic price continues to climb after this safeguard measure was announced on May 22," said Nithi Takviriyanun, managing director of Sarn Sing Dee Co, a Nakhon Ratchasima-based housing developer.
"If steel prices keep rising unreasonably, homebuilding prices will eventually increase as well, which is eventually passed to consumers."
Under the new import tariff, the duty on hot-rolled coil, sheet and plate containing alloys such as boron and chromium was raised to 33.11% from the usual import duty of zero to 5%.
Mr Nithi said steel was stable at 21 baht a kilogramme for three straight months last year, September to November, before dropping to 20 baht in December and rising to 21 baht in January.
The domestic price of hot-rolled coil has climbed since February after an investigation into imports was launched on Jan 27.
From February to June of this year, the price rose each month, reaching 23.50 baht a kilogramme in June.
Conversely, Chinese and other Asian prices declined during the same period.
In China, the price fell in each month of the first half, from 17.36 baht in January to 16.49 baht in June.
Other Asian prices dropped from 18.35 baht in January to 17.16 baht in June.
Mr Nithi said Sarn Sing Dee and the Bangkok-based developers Modern House Property Co and Preeda Holding Co will ask other developers and steel-using sectors to join the cause.
Those sectors include automobiles and auto parts, consuming 16% of steel in the market, machinery and industrial products (13%), electrical appliances (12%) and packaging (5%).
Construction is the biggest steel consumer at 54% of the total.
The developers will submit a letter to the National Council for Peace and Order on Aug 8 to ask for price controls.
In this year's first quarter, domestic steel consumption totalled 4.27 million tonnes, up by 10.1% quarter-on-quarter.
Domestic steel production rose by 36.8% in the same period to 1.96 million tonnes, while imports fell by 6.7% to 2.64 million tonnes.
Steel accounts for 30% of homebuilding cost, followed by wages (25%); bricks, stone, concrete and sand (20%); decorations (20%); and miscellaneous (5%).
Steel costs rose by 20% in the first half, while prices of other construction materials were stable due to unfavourable economic sentiment.