South Korea: POSCO, Hyundai Steel to keep HR prices unchanged for Feb'22

Major South Korean mills POSCO and Hyundai Steel are likely to keep their hot rolled (HR) prices unchanged for Feb'22 domestic sales due to rising raw material and other input material costs.

For instance, the price of Australian iron ore (62% Fines, CFR) rose to $130/t and coking coal prices are still continuing to rise above $440/t FOB levels.

Rise in coal prices has raised the cost of production of primary mills.

"China's HR export offers, which had been falling earlier, have rebounded and the market is cautiously predicting that current prices will bottom out. There are expectations that demand will improve after the Lunar New Year holidays in February. Thus, mills are maintaining their February prices in line with those of January," said an industry official.

Market participants expect raw material prices to rise further which will escalate manufacturing costs.

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