July 30,
The South Korean government has asked POSCO to lower its domestic steel price to protect SMEs. Following this news the shares of POSCO have fallen by 3.9%.
A restriction on steel prices is difficult due to
· fair trade law
· substantial international trade in the steel sector
POSCO has confirmed that it would go with the steel price hike implemented in July and would not consider a steel price cut in 4Q if regional sentiment were to improve. However, last Tuesday POSCO said in a statement that it would maintain prices of major stainless steel products for August at July levels to encourage local market demand. But it is said that it could cut the price in 4Q if the regional sentiment were to decline.
Source: Reuters
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