Authorities are due to inspect steel prices at retail and wholesale outlets nationwide after complaints by contractors that the cost of the metal has surged over the past few months.
Wiboonlasana Ruamraksa, director-general of the Internal Trade Department, said the department had been keeping an eye on steel prices and found that the prices of steel rods had risen to 20-21 baht per kilogramme now from 17-18 baht in the same period last year.
"The department has already assigned officials to inspect steel prices at retail and wholesale outlets to prevent hoarding and profiteering while the government is speeding up various infrastructure and low-cost housing projects," she said.
However, Ms Wiboonlasana attributed the rise of steel prices partially to the closure of substandard steel factories in China and China's policy to cut steel production, resulting in lower supply.
Authorities that discussed the issue with local steel traders and distributors were assured that steel supplies were adequate for local use.
More importantly, local manufacturers said they now operate at only 50% of their steel production capacity.
Thailand produces about 6 million tonnes a year, while consumption amounts to an average of 18 million tonnes. That means Thailand relies largely on steel imports mainly from China, from where it imported more than 12 million tonnes last year.
"We expect retail steel prices to stay stable and unlikely to adjust up much in the short term," Ms Wiboonlasana said. "Operators need to inform authorities of any price increase seven days in advance."
In a related development, Ms Wiboonlasana said on-site inspections of central markets by the department's authorities had found that the prices of food also remained stable.
However, she admitted prices of certain vegetables had increased because of lower supply in light of drought conditions.
In a move to alleviate consumers' burdens, the Commerce Ministry is committed to expanding its low-cost food scheme to cover 10,000 items by the end of this month, up from the present 8,200.
The scheme will be aimed mainly at locations such as factory sites with many low-income earners.