South Korea: POSCO likely to increase prices amid global cost pressures

• Rumors spread of POSCO STS Sept’25 price increase
• Market expects hikes for 300 series, 316L Extra

SteelDaily: Rumors were circulating within the stainless steel industry about a potential price increase from POSCO Stainless Steel (STS) in September, drawing significant attention from market participants. Despite having implemented two price hikes earlier this year, the market response was remaining muted. However, rising raw material costs and similar moves by global manufacturers were creating growing pressure for POSCO to adjust its prices.

Although the LME nickel price has slightly declined on a monthly average, nickel ore and nickel pig iron prices in China and Indonesia are rebounding, adding cost pressures for producers in Asia. Additionally, ferromolybdenum prices continue their upward trend, further burdening manufacturers. The strengthening won against the dollar has also increased import costs, intensifying the cost strain on POSCO’s pricing strategy.

China’s domestic stainless steel prices started fluctuating in August, with both futures and spot prices rising simultaneously, prompting expectations of price increases in neighboring Asian countries. Though prices in China trended downward in the latter half of August, they remained RMB 300-400 higher than the previous month, keeping market watchers cautious but optimistic.

In August, Indonesia’s Cheongsan Steel implemented two export price increases, signalling price momentum in the region. Simultaneously, European steelmakers raised surcharges on 300-series stainless steel for September, reinforcing a global trend of price rises aimed at offsetting rising input costs and protecting profitability.

Despite global price pressures, weak domestic demand challenges market absorption. A divide exists between large and small retailers, with many doubting full price hike realization. Industry insiders view these adjustments as necessary to correct excessively low prices, but buyers remain cautious, weighing essential corrections against reluctance to pay higher costs immediately.

Overall, the stainless steel industry faces a complex landscape where rising global costs and supplier price hikes are inevitable, yet market demand and price acceptance continue to show uncertainty. POSCO’s forthcoming September price announcement is being keenly watched as a bellwether for price trends in Asia’s stainless steel market. Market participants largely expect POSCO to raise prices, aligning with the broader industry movement towards regaining profitability amid rising costs.

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