South Korean steel major POSCO has announced that it would finalise an agreement to raise heavy steel plate prices this week.
The company’s briefing for Jan-March 2022 was held on 25 April wherein an agreement was finalised to raise prices for consumers in the automobile and home appliances segments. Another agreement was made to raise the price of heavy plates with three consumers in the shipbuilding segment.
Steel sheet price negotiations with Hyundai and Kia Motors are yet to be finalised but as annual supply stands in the range of 600,000-700,000 t, it seems that the agreement to raise the quantity for other automobile companies and home appliances has been finalised.
In addition, an agreement is being made to raise the price of steel plates for shipbuilders by KRW 150,000/t ($119/t) in the first half of this year.
Outlook
However, it is not yet clear by how much prices would rise in negotiations with domestic automakers, especially Hyundai-Kia Motors, and it is likely that an agreement will be finalised at the level of KRW 150,000/t ($119/t).
Although the date of application of the price hike has not yet been decided, it is expected that it would be done from January.
Note: This insight has been published in accordance with an article exchange agreement between SteelMint and SteelDaily.
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