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Headquarters of POSCO International in Songdo, Incheon. (Photo courtesy of POSCO International) |
[Alpha Biz= Kim Jisun] Major South Korean steelmakers are increasing product prices amid rising raw material costs, higher oil prices, and currency fluctuations, raising concerns over broader cost pressures across manufacturing industries.
According to industry sources on April 7, POSCO has notified customers of a KRW 50,000 per ton price increase for key carbon steel products—including hot-rolled, cold-rolled, and steel plates—for the second quarter, representing an estimated 5% rise. The company is also planning to raise stainless steel prices by KRW 100,000 per ton.
Following POSCO’s move, Hyundai Steel increased rebar prices from KRW 780,000 to KRW 810,000 per ton, with a further hike to KRW 830,000 scheduled for April 16. Dongkuk Steel is also considering similar increases.
The price hikes are driven by rising iron ore prices, which climbed from $99 per ton in late February to nearly $108 as of early April, amid intensified global competition for resources. At the same time, geopolitical tensions in the Middle East have pushed up oil and coking coal prices.
A weaker Korean won—trading above 1,500 per dollar—and surging shipping costs have further amplified cost burdens.
As steel prices rise, industries such as automotive, shipbuilding, and home appliances are expected to face increased input costs, heightening concerns over a broader wave of cost inflation across the manufacturing sector.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
