South Korean steelmaker POSCO has decided to issue discounts to distributors on its coated steel sheet products. It will retroactively apply the discount to April tonnages, reducing its list price by KRW 40,000/mt (36,99 $/mt) for hot-dip galvanized steel sheets and electrolytic galvanized steel sheets and by KRW 90,000/mt (83,24 $/mt) for hot rolled galvanized steel sheets, to its related steel service centers in the second quarter of the year.
In the case of hot rolled galvanized steel sheets, the company has decided to allow a relatively large discount in an attempt to emerge from a slump in sales.
It has also been difficult to sell hot dip galvanized steel sheets and electrolytic galvanized steel sheets, but the company has decided to give a smaller discount for these, as it has already reduced the weight of hot dip galvanized steel sheets in the production of its cold rolled steel sheets and the demand for electrolytic galvanized steel sheets has been backed up by a certain degree due to streamlining works at its No.2 electro-galvanizing facilities at its Gwangyang Works.
However, it remains a question whether POSCO's decision to allow such discounts in the sales of the products in question will be fruitful, as the actual distribution market prices for flat steel products are still much lower than POSCO's prices.