South Korean distributors of stainless steel products are forecasting that it will be difficult for some time to expect the current narrow price gap between stainless hot rolled coils and stainless cold rolled steel sheets to return to normal.

The price gap between stainless HRC and stainless CR in the South Korean domestic market has recently narrowed to a range of KRW 50,000 to KRW 100,000 per tonne, while the current gap between them in major domestic producer POSCO's ex factory prices is KRW 270,000 per tonne.

Such a phenomenon in the distribution market has resulted from the recent steep fall in the distribution market price for stainless cold rolled. In the distribution market, the stainless HRC price has decreased by a smaller margin than stainless CR prices, as it is not so easy to obtain supplies of stainless HRC and as there is greater demand this product as compared with stainless CR.

South Korean distributors of stainless cold rolled are saying that it has been difficult since the end of last year for them to reflect the adjustment of their purchasing price in their selling price in the market due to severe sales competition caused by the slowdown of major consuming industries and producers' enlargement of supply in the domestic market.

(Sourced from www.steelorbis.com)
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