POSCO Korea and China Steel Corporation (CSC) of Taiwan have decided to increase their hot rolled coils (HRCs) and cold roil coils (CRCs) prices, delivered to Japan in the second quarter of CY’23 to improve profitability. Moreover, Chinese prices have already increased, and when POSCO and CSC raised the price, imported steel sheets prices will also be high.
HRCs prices in East Asia rose to around $700/t CFR. However, it is still difficult for global manufacturers to ensure profitability at this price. Hence, a price hike is likely.
The world’s leading steel producer, China’s Baoshan Steel, has raised its domestic selling price for three consecutive months. Moreover, another increase is expected in April 2023. The company is overbooked due to strong demand in the market and the prices increase in the steel market in the East Asian region is expected to continue. Sales representatives believe that the increase in POSCO and CSC’s selling prices for Q2 will not be small, as prices are expected to continue to rise.
Overseas major automakers are suffering from deteriorating profitability. So far, the price of Japan has remained expensive by international standards even as the yen has depreciated, but with the upturn in overseas markets, the sense of overpricing for Japan has eased.
Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.
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