POSCO announces hike in stainless price

SteelOrbis Shanghai On 23 January, South Korea-based Pohang Iron and Steel Company (POSCO) announced that they will increase their stainless steel product prices by 200,000 Won/mt ($210/mt) from 5 February, 2007. As a result of this decision, POSCO's 304 series hot rolled stainless ex-factory price will rise to 3,710,000 Won/mt ($3,880/mt), while its 304 series 3.0 mm thick cold rolled price will increase to 3,980,000 Won/mt ($4,160/mt). POSCO said that this price adjustment was due to the increased costs caused by the rise in the price of nickel. Last year, POSCO adjusted the price of its 300 series a total of seven times. Accordingly, since last February the price of the 300 series has increased 1,690,000 Won/mt ($1,768/mt) to 3,710,000 Won/mt ($3,878/mt), i.e., an increase of 83.7 percent. Currently, the nickel price POSCO pays is around $30,600/mt - $3,970/mt lower than the average nickel price at the LME in December, which was at $34,570/mt. POSCO also declared that, with a view to maintaining their competitiveness with imported products, they did not increase their stainless price by as much as the rise in the nickel price.