Steel Industry News
POSCO steel price hikes hit industries all around
Tuesday, 04, May 2010
POSCO's announcement to raise prices for its benchmark steel product last week was perhaps the corporate world equivalent of throwing water on red hot metal.The decision by the world's fourth-largest steelmaker, echoed by other domestic mills planning their own price hikes, has ignited an explosive reaction among companies in construction, shipbuilding, automotives and other industries in what appears to be shaping up as a full-blown conflict.
POSOCO raised the price of its hot-rolled steel by 25 percent to 850,000 won ($760) per ton from this month, which marks the first price increase by the steelmaker since it abruptly cut it prices by 20 percent in May last year. Hyundai Steel, the country's No.2 steelmaker, also raised prices of its major steel products by up to 23 percent to match POSCO's hot-rolled steel and plate prices. The companies have cited higher cost of raw materials such as iron ore and coking coal for the more expensive price tags.
