South Korea: Steel producers demand 64% hike in plate prices from shipbuilders

South Korea’s big shipyards are currently in negotiations with major domestic steelmakers, POSCO and Hyundai Steel, over prices of steel plates to be supplied under contracts for the rest of the year. As per industry sources, the steelmakers are demanding a 64% increase in prices to 1.15 million won/t ($1,301.05/t) for H2 CY’21, citing higher prices of raw materials, mainly iron ore. The steel companies say shipbuilders are enjoying a rally in orders, while the shipbuilders are pointing to slow recovery from the pandemic-induced downturn. Steel plate prices are likely to range between 1 million and 1.5 million won/t ($867.28/t and $1,301.05/t) for the rest of 2021, as per reports.