South Korea: POSCO raises stainless steel prices for May'24

As per SteelDaily, POSCO has opted to raise the prices of stainless steel for May. The increase will amount to KRW 100,000/t ($72/t) for the 300 series and KRW 50,000/t ($36/t) for the 400 series. This decision by POSCO takes into account several factors including the costs of key raw materials such as nickel and chrome, as well as the fluctuations in the won-dollar exchange rate.

The surge in non-ferrous metal prices stems from worries over disruptions in the global raw material supply chain, notably due to sanctions on Russian nickel imposed by the UK and the US, alongside escalating tensions in the Middle East.

LME nickel prices have surged past the $19,000/t mark, marking a robust increase over the past 7 months since September 2023. Additionally, the second-quarter ferrochrome benchmark price has risen by 5.6% compared to the previous quarter.

The hike in stainless steel raw material prices has led to continuous increases in new offer prices and alloy surcharges from major overseas mills. Transaction prices in key distribution markets such as Wuxi and Foshan in China have also seen an uptick compared to the prior month.

POSCO has noted the rapid rise in molybdenum prices but has stated intentions to closely monitor the trend in raw material prices and market conditions before deciding on any adjustments to the sales price of molybdenum-added steel.