Pulse News reported that South Korean POSCO and other steel majors are negotiating with Hyundai Motor & Kia on the average contract price for the first half, which would set benchmark for other customers. According to industry sources, steel mills are demanding an increase of KWR 150,000-200,000 per tonne (USD 120-160) over the prices in the second half of last year. If the latest demand is accepted, automotive steel prices would jump to KWR 1.30-1.45 million per tonne (USD 1050-1170). Automotive steel was priced at 1.15-1.25 million per tonne (930-1010) in H2 of 2021, up KWR 150,000 (USD 120) from H1 of 2021 South Korea’s big three shipbuilders Korea Shipbuilding & Offshore Engineering Co, Daewoo Shipbuilding & Marine Engineering Co and Samsung Heavy Industries Co are also negotiating steel prices with steelmakers for supply of steel plates in the first half of 2021. Steel plate prices last year rose twice by KWR 100,000 per tonne (USD 80) in H1 of 2021 and KWR 400,000 (USD 320) in H2 of 2021. They now are traded at around KWR 1.1 million per tonne (USD 890). Media reports suggest that steel users are resisting the move for such enormous hikes as rapid increases in 2021 have already shrunk margins of automakers & all three major shipyards incurred large losses in 2021 as shipbuilders estimate their order value based on the steel plate price set at the time of vessel contract signing
Pulse News reported that South Korean POSCO and other steel majors are negotiating with Hyundai Motor & Kia on the average contract price for the first half, which would set benchmark for other customers. According to industry sources, steel mills are demanding an increase of KWR 150,000-200,000 per tonne (USD 120-160) over the prices in the second half of last year. If the latest demand is accepted, automotive steel prices would jump to KWR 1.30-1.45 million per tonne (USD 1050-1170). Automotive steel was priced at 1.15-1.25 million per tonne (930-1010) in H2 of 2021, up KWR 150,000 (USD 120) from H1 of 2021 South Korea’s big three shipbuilders Korea Shipbuilding & Offshore Engineering Co, Daewoo Shipbuilding & Marine Engineering Co and Samsung Heavy Industries Co are also negotiating steel prices with steelmakers for supply of steel plates in the first half of 2021. Steel plate prices last year rose twice by KWR 100,000 per tonne (USD 80) in H1 of 2021 and KWR 400,000 (USD 320) in H2 of 2021. They now are traded at around KWR 1.1 million per tonne (USD 890). Media reports suggest that steel users are resisting the move for such enormous hikes as rapid increases in 2021 have already shrunk margins of automakers & all three major shipyards incurred large losses in 2021 as shipbuilders estimate their order value based on the steel plate price set at the time of vessel contract signing
