Prices drop for construction supplies in Thailand

[webfact]

Prices drop for construction supplies
PETCHANET PRATRUANGKRAI
THE NATION



BANGKOK: -- FOLLOWING the collapse of fuel costs, the retail prices of building and other basic materials will be reduced in stages by 2-7.7 per cent to ensure fairness to consumers, according to the Internal Trade Department.

The first priority is five products - lubricant oil by 2-5 per cent, plastic pellets by 3.85-7.7 per cent, cement by 2-4 per cent or Bt2-Bt4 per 50-kilogram sack, roof tiles by 5-7 per cent or Bt3-Bt4 per piece and steel by 5-10 per cent or Bt1, 000-Bt1,500 per tonne.

Boonyarit Kalayanamit, director-general of the department, said yesterday that some products that rely heavily on transportation as well as petrochemical by-products are first in line to cut retail prices because the effect of low oil prices on their cost of production is clear.

However, it might not be able to adjust the retail prices of some products at all or maybe by just a notch because they depend less on diesel and have benefited only a little from the lower diesel price.

The cost to make each product varies, while each product will be impacted differently from the sliding diesel oil price.

A Bt4.50-per-litre chop in the diesel price will bring down the cost of goods by 0.01-1.04 per cent on average. Products that are heavy will benefit the most from softening transport costs, while the cost of production for consumer goods such as shampoo, soap and detergent will go down by only 0.06-0.13 per cent.

The prices of agricultural products may not be able to be changed much. For example, pork will only see a price cut of 0.08 per cent, eggs of 0.14 per cent and chicken of 0.17 per cent.

The department will continue to discuss with manufacturers and retailers about revising down some of their prices if it finds that their cost of production has dropped due to lower fuel prices.

Initially, consumers will see only the prices of heavy and petrochemical by-products coming down, but the prices of other goods should also decrease in the future as long as oil prices continue to be low.

Other products that will see price decreases are chemical fertilisers to the tune of Bt10-Bt30 per 50kg sack, and consumer goods, especially essential goods.

The department will next week announce its recommended price for cooking gas of Bt395 per 15kg tank for delivery up to five kilometres.

As a measure to protect consumers from unfair quotes, the department will dispatch teams of officials every week to the field to inspect prices and tags.It will also set up community markets in some areas to sell cheap products for consumers as part of the government's plans to help ease the cost of living.

Source: http://www.nationmultimedia.com/business/Prices-drop-for-construction-supplies-30252236.html


-- The Nation 2015-01-20

[Thai at Heart]

to ensure fairness to consumers

My lordy lord, how magnanimous of them.

[NongKhaiKid]

Costs down and workmanship standards still high ?

[BSJ]

All things considered, I think the pump price of fuel is still too high.

[worgeordie]

The price of crude oil has dropped by 50% +- and they

drop prices by a few Bhat, prices go up very quickly

on a oil price rise,but never come down when they drop.

regards Worgeordie

[Thian]

Teakwood is still very expensive though. It's cheaper to buy outdoor furniture in Europe then in Bangkok.

[recycler]

"For example, pork will only see a price cut of 0.08 per cent"

Just explain how pork can be at a European and even above the US price in a low wage country like Thailand?

Thailand is one of the biggest agricultural exporters in the world and the grocery prices are at a near western level.

This is just an optic measure to keep the poor and ignorant masses at bay, the margins of the bug businesses increased more than what they give away.

[chotthee]

Costs down and workmanship standards still high ?

Question mark removed.

It should be a statement, not a question.

Costs down and workmanship standards still high.

[northernboy]

"For example, pork will only see a price cut of 0.08 per cent"

Just explain how pork can be at a European and even above the US price in a low wage country like Thailand?

Thailand is one of the biggest agricultural exporters in the world and the grocery prices are at a near western level.

This is just an optic measure to keep the poor and ignorant masses at bay, the margins of the bug businesses increased more than what they give away.

Guess it has to do with world food prices as well as the limited number of local large producers and retail suppliers of said food products being related and businesses also intertwined. But that would just be a guess as I am sure who the biggest retailer and suppliers are in the food chain. ho ho ho

[ratcatcher]

Teakwood is still very expensive though. It's cheaper to buy outdoor furniture in Europe then in Bangkok.

Just out of interest, what has the price of teak got to do with world oil prices?

Teak is,supposedly, an "endangered" timber and logging in Thailand, I believe, is banned. Most of it entering Thailand comes from Burma AFAIK.

http://www.deesawat.com/

[Japhrodisiac]

to ensure fairness to consumers

My lordy lord, how magnanimous of them.

They mention nothing about all the other commodity prices that have collapsed, not just oil related product, Copper hit a multi year low last week, all industrial metals down at lows now. Plastics are petro products too, funny how prices ratchet up 100% but when the raw goods drop 50% prices go down by only a few %, 'in fairness to consumers"

[CelticBhoy]

It's always a result when you can go out and

have yourself a good bucket for next to nought ...

[ICECOOL]

Before you criticize Thailand maybe have a look at your own countries where fuel prices have not dropped much either and I will bet neither have the other material costs....

[wabothai]

Prices were raised considerably during the Bangkok flood. They never went down.

Construction materials should drop considerably.

High fuelprices were always the excuse wherever I bought construction materials.

[Doc46]

All things considered, I think the pump price of fuel is still too high.

What you think,,,,this is the way for the Government to make extra Millions of Baht

[elgordo38]

to ensure fairness to consumers

My lordy lord, how magnanimous of them.

Well at least here they talk of passing on savings in North America the big companies would just shove the cash into their pockets. Business as usual

[elgordo38]

All things considered, I think the pump price of fuel is still too high.

What you think,,,,this is the way for the Government to make extra Millions of Baht

I think the Asian price of oil is much higher than North America. That is why the Americans want to ship compressed gas here because the price is double or more here than at home.

[Thai at Heart]

"For example, pork will only see a price cut of 0.08 per cent"

Just explain how pork can be at a European and even above the US price in a low wage country like Thailand?

Thailand is one of the biggest agricultural exporters in the world and the grocery prices are at a near western level.

This is just an optic measure to keep the poor and ignorant masses at bay, the margins of the bug businesses increased more than what they give away.

Call CP. They have over 50% of the market...

[Thai at Heart]

to ensure fairness to consumers

My lordy lord, how magnanimous of them.

Well at least here they talk of passing on savings in North America the big companies would just shove the cash into their pockets. Business as usual

Just wait. If these oil prices persist it only needs one actor per market to drop prices and they all have to follow without any govt intervention.

[Thai at Heart]

to ensure fairness to consumers

My lordy lord, how magnanimous of them.

Well at least here they talk of passing on savings in North America the big companies would just shove the cash into their pockets. Business as usual

Just wait. If these oil prices persist it only needs one actor per market to drop prices and they all have to follow without any govt intervention.

[recycler]

"For example, pork will only see a price cut of 0.08 per cent"

Just explain how pork can be at a European and even above the US price in a low wage country like Thailand?

Thailand is one of the biggest agricultural exporters in the world and the grocery prices are at a near western level.

This is just an optic measure to keep the poor and ignorant masses at bay, the margins of the bug businesses increased more than what they give away.

Call CP. They have over 50% of the market...

That's definitely one of the few family conglomerates that runs the show here.

They are so confident that they paid an outrageous 6.6 billion US$ for Makro in 2013.

These few companies control the market and shut all competition out and rob the people dry.

In Thailand 0.1% of the people have 50% of the assets, compared to this the US is a socialist dream where this 0.1% only has 20%...

Consumers in most of western Europe have benefited from fierce competition between supermarket chains. By now grocery prices are close to what we pay in Thailand!

[gemini81]

All things considered, I think the pump price of fuel is still too high.

Construction supplies as suggested in headline don't match all the random consumer good examples in the article. Well... not too surprised...

Costs are remaining about the same from our local suppliers; trouble here is contractor is given a certain amount for supplies to purchase for use in construction but by far and large they source cheaper stuff, keeping the costs for them low and profit margin nice. But construction supplies here as a whole are rather cheap to begin if you are handy, or know some reliable contractors to go to. Better yet, source yourself at places like Thai Watsadoo (however they spell it in English).

Edited January 20, 2015 by gemini81

[Bloodnut]

Once a price point has been accepted in the general public, the vendors don't reduce it just because their costs come down...

A cowpat will still cost the same... the poor keep losing out.

"The rich get richer - the poor get the picture..." - Midnight Oil.

Richest 1% to own more than the rest of the world - Oxfam stated yesterday. A storm may be brewing.

http://www.bbc.com/news/business-30875633

[Naam]

Costs down and workmanship standards still high ?

in Thailand, like in most countries, you get what you pay for.

[Naam]

"For example, pork will only see a price cut of 0.08 per cent"

Just explain how pork can be at a European and even above the US price in a low wage country like Thailand?

Thailand is one of the biggest agricultural exporters in the world and the grocery prices are at a near western level.

This is just an optic measure to keep the poor and ignorant masses at bay, the margins of the bug businesses increased more than what they give away.

the answer is low productivity. do you think you find in Thailand big pig raising companies which raise between 50,000 and 80,000 animals like in the Netherlands and Germany? have you ever seen in Thailand grain fields which reach to the horizon like in the U.S. midwest not to mention ranchers with 100,000+ heads of cattle?

Edited January 20, 2015 by Naam

[gemini81]

Costs down and workmanship standards still high ?

in Thailand, like in most countries, you get what you pay for.

More than in other places; Hong Kong, Singapore, Macau, Dubai- pay a lot and get very little!

[maidee]

oil drops 50% and you get 1-2%

sounds good deal, right, same same as you get the discount in tesco / big c and others

looooooooooooooooooooool

[DrDave]

oil drops 50% and you get 1-2%

sounds good deal, right, same same as you get the discount in tesco / big c and others

looooooooooooooooooooool

The retail price of diesel has fallen about 4 baht/lt (13%) recently.

How much of a drop at the retail pump would you expect to occur? The 50% drop in crude prices represents a drop in one of the raw materials (albeit the major ingredient) only.

Keep in mind that there are chemical additives, refinery production costs and and capital asset (loan) payments, storage, labor, administration, marketing, distribution (including pipelines and maintenance), retail station labor and rents, and so on. None of those costs have dropped.