SeAH Steel has announced it would reduce the discount rate of 6% for white pipes and 7% for black pipes effective 28 Mar’22 due to the recent rise in prices of steel pipe products.
The price hike is also the result of the persistent imbalance in the supply and demand of raw materials and rising raw material prices in the domestic and overseas markets.
As SeAH Steel raises the price of steel pipe products for end-March shipments, it is expected that domestic plumbing material makers, including Hyundai Steel and Husteel, will also decide the extent and timing of their price hikes soon.
In the case of Hyundai Steel, it is known that most plumbing material companies are considering a price hike in early April.
This is because the supply burden is increasing as the prices of hot-rolled products from China and other imported goods continue to rise following POSCO’s plan to raise the price for hot-rolled (HR) products by KRW 100,000/t ($82/t) in April after KRW 50,000/t ($41/t) in March.
It was almost impossible to secure profitability as the selling price of steel pipe products continued to fall due to stagnant demand in the second half of last year. However, the subsequent intensification of competition for orders led to aggressive price hikes by steel pipe producers.
Outlook
Meanwhile, structural pipe producers will most likely announce further price hikes in April following the hikes in Feb and March.
The rise in prices of steel pipe products reflects the increase in raw material prices and it is expected that prices will stay firm for the time being.
Note: This insight has been published as part of an article exchange agreement between SteelMint and SteelDaily.
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