Posted on 01 Jun 2021
Korean steel makers are raising prices of automotive steel sheets for the first time since 2017 amid jumping commodity prices.
Posco, Hyundai Steel and other major steel makers in Korea have reached an agreement with automaking majors Hyundai Motor Co. and Kia Corp. to increase fixed prices for supplies of automotive steel sheet by 50,000 won ($44.93) per ton, according to industry sources on Monday.
The last hike was made in the second half of 2017.
The increase comes amid rapid strengthening in commodity prices.
Iron ore price hovers above $190 after hitting an all-time high of $237.57 per ton on May 12.
The base steel material has pushed up the price of hot rolled steel sheets used for making automotive sheet metals to over 1.3 million ($1,168) per ton on May 21, nearly doubled from the end of January.
The hike bodes well for the bottom line of steelmakers.
Hyundai Steel produces 5.5 million tons of automotive steel sheets a year and supplies 90 percent of its output to sisters Hyundai Motor and Kia.
Posco, the country’s largest steel maker, also generates a bulk of its income from automotive steel sheet business.
On Monday, Hyundai Steel rose 0.19 percent to close at 53,400 won while Posco ended down 0.56 percent at 355,000 won in Seoul.
Source:Pulse
