- Rally in raw material prices pushes up production costs
- Global majors’ pricing cues, stronger KRW influence decision
SteelDaily: POSCO has announced a price increase of KRW 200,000/t for February shipments of 300-series stainless steel, citing sustained upward pressure from raw material costs and a persistently strong exchange rate. The move reflects mounting cost burdens across the global stainless steel supply chain, leaving mills with limited flexibility to absorb input inflation.
The South Korean producer said prices of key stainless steel raw materials continue to rise sharply, while elevated currency levels have further increased procurement costs. POSCO also factored in the latest European alloy surcharge announcements and recent price hikes by major global stainless steel producers when finalising its February pricing strategy.
Market participants noted that the hike aligns with a broader global trend, as mills across Europe and Asia pass through higher alloy and energy costs. Rising nickel, ferro chrome, and molybdenum prices have lifted the cost base for stainless steel producers, particularly for 300-series grades, reinforcing a firm pricing environment despite mixed demand conditions.
POSCO indicated that the February adjustment reflects a comprehensive review of both domestic market conditions and industry-specific supply-demand dynamics. The company added that it plans to continue implementing pricing policies closely linked to movements in global raw material markets and regional demand trends.
The announcement follows similar price increases by major Asian and European stainless steel producers, signalling coordinated efforts by mills to defend margins amid volatile raw material markets. Buyers, however, remain cautious, with downstream demand yet to show a broad-based recovery in some end-use sectors.
Outlook
Stainless steel prices in Asia are expected to remain supported in the near term, underpinned by high alloy costs and firm mill discipline. However, resistance from end-users and slower demand recovery may limit the pace of further price increases.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint
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