South Korea: Hyundai Steel's pipe prices up by $82/t for April shipments

Hyundai Steel recently announced a revision in the prices of steel pipes and the cash discounts. It will increase the base price of all steel pipe products by KRW 100,000/tonne (t) ($82/t), and for the plating extras, by KRW 15,000/t ($12/t) for Apr'22 shipments.

In addition, the company decided to reduce the cash discounts on specific items from 1.5% to 1.2% from 1 Jun'22.

The company increased the prices for steel pipes due to rise in manufacturing costs, increase in input and raw material prices such as domestic and overseas hot-rolled coils, heavy plates and zinc.

Following SeAH Steel, Hyundai Steel also raised the prices of steel pipes, while Husteel and other plumbing material makers are expected to announce price hikes soon.

However, the sales of major companies have not improved significantly, and there is uncertainty in the prices of raw materials for steel such as iron ore and coking coal.

Outlook

As the prices of raw materials continue to rise in both domestic and overseas markets, further price hikes are expected to be announced in March and April.

In addition, if raw material prices rise further, manufacturers will be bound to raise prices in May as well.

Note: This insight has been published in accordance with an article exchange agreement between SteelMint and SteelDaily.