South Korean steel producer POSCO has announced that it will lower its ex-factory prices for June by KRW 300,000/mt ($279/mt) for its 300 series stainless steel products while it plans to keep prices of its 400 series stainless products unchanged, according to Korea Metal Journal.
In accordance with the rapid fall in the international market price for nickel, sales of stainless steel products have recently become sluggish with prices of these products dropping not only in the domestic market, but also in the overseas markets, including neighboring countries such as China and Japan.
In this connection, POSCO has decided to cut ex-factory prices for its 300 series stainless steel products, adjusting its ex-factory prices to a realistic level and narrowing the price gap between its own products and imported products in the domestic market with the aim of revitalizing its sales, a POSCO official stated.
Accordingly, POSCO's ex-factory price for 304 stainless hot rolled coils will be decreassed to KRW 3.6 million/mt ($3,349/mt), while its price tag for 304 stainless cold rolled steel sheets (2 mm and 2B) will be adjusted down to KRW 3.87 million/mt. ($3,600/mt)
POSCO said it expects that its price adjustment this time will make a great contribution to the stabilization of demand for its stainless steel products in the domestic market by helping its consumers ease the difficulties they face in ensuring the price competitiveness of their products and blocking the flow of large tonnages of low-priced foreign products into the domestic market.
As of the end of May, local traders were selling domestic stainless hot rolled coils and 304 stainless cold rolled steel sheets at KRW 3.7 million/mt (3,442$/mt) and KRW 3.8 million/mt, ($3,536/mt) respectively. The market prices for imported stainless steel products were at similar levels, worsening the profitability of traders who deal in domestic stainless steel products.
$1 = KRW 1,075