POSCO Hikes Domestic Flat Steel by 50,000-55,000 won/t

POSCO announced on Tuesday the firm increases the domestic selling price of hot rolled steel sheet by 50,000 won to 900,000 won per tonne, which is equivalent to US$ 739 and 68,400 yen per tonne for the order in July-September. The firm increased the hot rolled sheet price by 170,000 won for the order in May. The firm increases the price by 50,000 won for plate and wire rod, by 55,000 yen for cold rolled sheet and hot dip galvanized steel due to the strong demand for automobile and home electronics. On the other hand, the increase in the price of pig iron for castings is only 30,000 won considering the profitability of small foundries.

The steel selling price of POSCO increases to 950,000 won per tonne for plate, 1.02 million won for cold rolled sheet, 1.12 million won for galvanized steel, 940,000 won for wire rod and 730,000 won for casting pig iron.

The raw material cost increases by around 20% in July-September from April-June. The cost increases is 110,000-120,000 won per one tonne of steel products. While the best effort to absorb the cost increase, the firm passes the part of the increase to steel selling price. At the same time, the firm aims to close the price gap between high priced imported steel and domestic price by the hike when the imported steel price is US$ 40-50 higher than the domestic level.

The firm increased the cold rolled and galvanized steel price by 180,000 won per tonne in May while the increase in plate price was 80,000 won considering the profitability of shipbuilders.