South Korean steel producer POSCO has announced increases in its domestic prices for plates (excluding shipbuilding plates) and for hot rolled sheets of seven and two percent respectively, to take effect as of August 9, 2007.
POSCO has disclosed that its plate (excluding shipbuilding plate) price will increase to Won 690,000/mt ($745/mt) ex-warehouse, while its hot rolled sheet price will rise to Won 510,000/mt ($551/mt) ex-warehouse.
In comments made to SteelOrbis regarding the reasons behind this price rise for the domestic market, POSCO's spokesperson identified two factors. First, the current strong demand for plates in the domestic market is expected to grow further, meaning that demand will exceed supply and thereby create a tight market. Second, there is a huge gap between the prices of POSCO and those of the other major domestic plate producer, Dongkuk (currently the gap is approximately $130/mt). A further widening of the existing price gap will exert great pressure on POSCO to increase its prices, the company's representative stated.