- 300-series prices expected to rise significantly in Apr
- Margins under pressure in Q1 despite successive hikes
SteelDaily: POSCO is expected to increase stainless steel prices in April, as mounting cost pressures from energy, raw materials, and currency fluctuations limit its ability to absorb expenses. Market participants indicated that the move follows a challenging Q1, where despite gradual hikes, margins remained under pressure.
Cost escalation drives price hike expectations
Rising energy costs linked to Middle East tensions, coupled with higher logistics and raw material prices, have significantly increased production costs. Industry sources expect around KRW 100,000/t ($/t) hike for 300-series products, including 316L grades.
Distribution segment moves ahead of announcement
Distributors have already initiated pre-emptive price increases to protect margins, reflecting expectations of an imminent official hike. Market participants noted that earlier price adjustments from February and March were not fully passed on.
Global trend supports upward revision
Parallel price increases by Asian and European producers, along with rising alloy surcharges, continued to support the uptrend. The anticipated hike is expected to further firm regional stainless steel prices in the near term.
Outlook
Stainless steel prices are expected to remain on the higher side in the short term, supported by cost-push inflation and supply-side pressures.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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