Steel price volatility to continue this year: KRC

BANGKOK, June 12 (TNA) – Steel prices are likely to remain volatile in the second half of this year due to the economic slowdown of countries in ASEAN and other regions, according to the Kasikorn Research Center.
The leading think tank reported the Local Trade Department late last month allowed steel prices of all categories to rise by 7 baht per kilogramme, which is 23 per cent higher than the previous average increase in February.
It resulted in the price index on steel and products used for construction surged by 44.7 per cent in the first five months of this year, which had adversely affected construction contractors.
The steel price surge stemmed from the continued price increase of coal, a main production cost factor, and oil, which is a main factor in the transport of the product.
Additionally, the demand for steel in China had accelerated following last month's earthquake disaster in Sichuan, which caused incalculable damage to lives and property of people there.
To rehabilitate devastated buildings and the basic infrastructure in the provinces, China requires a huge amount of steel.
Much speculation on commodities due to the weakening of the US dollar is another factor that could push up steel prices in the world market.
However, KRC said, the expected economic slowdown in many regions in the second half of the year due to higher inflation and interest rates could slow investment in many countries including Thailand.
So, it is expected the steel prices in the world market would remain volatile in the second half of the year, but prices will continue to stay high given these factors.