Steel giant POSCO is currently undergoing repairs at its facilities at the Pohang works, which was hit by the typhoon Hinnamnor and is likely to commence regular operations at hot-rolling (HR) plant-1 soon.
Current prices of hot-rolled products dropped to KRW 11,50,000/t ($806/t) levels from KRW 12,50,000/t ($876/t) levels seen in early-October. This was mainly due to subdued demand from the construction industry, which has also increased the burden on sales and further kept prices in domestic market under pressure.
This, in turn, has triggered a decline in imported offers too. Imported HR plate offers declined to KRW 11,50,000-11,80,000/t ($806-827/t) levels as a result of supply constraints and delayed economic recovery. Domestic steel manufacturers are likely to adjust prices to ensure profitability. Meanwhile, POSCO has not announced any change in prices yet.
“POSCO will start normal operations at its hot-rolling mill at Pohang works. However, there are supply constraints amid strike by workers of Hyundai Steel. Again, this might result in decline in prices in the secondary market,” said an industry official.
Note: This article has been written in accordance with an article exchange agreement between SteelDaily and Steelmint.
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