South Korea: Hyundai Steel Increase Plate Prices

Hyundai steel- South Korea 2nd largest steelmaker and world's 13th largest steel making company has raised plate prices.Company's production of crude steel fell by 2%,Y-o-Y from 20.48 MnT in CY15 to 20.09 MnT in CY16.

As per reports-South Korea's steelmakers Hyundai motors have reached to an agreement with Hyundai steel and Kia motors to raise plate prices of automotive steel sheets by nearly to USD 53.4/MT in May'17 in order to boost the annual sales.

However,increase in plate prices by the company is still uncertain as the two automobiles companies have faced sluggish sales in China and US owing to Terminal High Altitude Area Defense system and aging models.

Although,out of 4.5 MnT of automotive steel-sheets produced by Hyundai steel, 4 MnT is supplied to these two major automotive companies. Furthermore POSCO in South Korea has agreed to raise the plate prices with major automakers by 10% earlier this year.

Chinese Plate export offers May Fall On Weakening Domestic Market
Chinese plate export prices are anticipated to fall by USD 5-10/MT as the China's domestic market has started experiencing dull demand post Dragon boat festival which was organized in the start of this week.

Current plate export offers remain unchanged against last week and are assessed in the range of USD 445-450/MT, FoB China.

Meanwhile prices of plates in domestic market are heard to be in the range of RMB 3,320-3,320/MT which is equivalent to USD 478-484/MT, including VAT & other taxes.

Although,Chinese mills were offering higher export offers last week which led to drop in demand from overseas buyers.However,sparse trading coupled with sluggish demand may lead to Chinese plate export offers under pressure.

Moreover Chinese mills may not see any upward momentum in plate prices owing to tight credit supply and dull season for domestic market.

India-No Plate Export Offers From Steel Mills
Absence of fresh plate export offers from Indian mills continues this week coupled with dull domestic demand.

Currently plate prices are heard in the range of INR 38,500-39,000/MT (ex-Delhi) and INR 38,500/MT (ex-Mumbai). Prices are inclusive of Excise duty of 12.5%,VAT/CST extra.

Moreover, plate manufacturers and traders are liquidating old stocks since the clarity on implementation of GST is still awaited.