Posted on 28 November 2007

 

Source: YIEH, November 27, 2008
It is commented by market analyst that it is very possible for Posco to increase its HR price for next first quarter.

In the forth quarter of this year, the domestic price of HRC in South Korea differed a lot between different mills. For example, the price of hot rolled coils for cold rolling of Posco (SPHC) was at US$568/ton, the price of Hyundai steel was at US$634/ton.

In China, the price of Baosteel was at FOB US$565/ton while that of Wu Gang was at FOB US$590/ton. And the price of JFE Steel in Japan was at FOB US$535/ton.

Taking the cost of freight and insurance into consideration, both the cfr price of China and Japan are higher than that of Posco. Therefore, Posco may increase its HR price by 50,000 won/ton in the next first quarter, 2008. Meanwhile, the CR price in South Korea is expected to up by US$30~50/ton as well.

 

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