POSCO Seeking 64% Hike in Steel Plate Prices H2 from Shipbuilders
Yonhap reported that South Korean steelmakers appear to be in the final stage of negotiations with shipbuilders over prices of steel plates, as country's largest steelmaker Posco has reportedly proposed a hike in the prices of thick steel plates to KWR 1.15 million (USD 980) per tonne, marking a sharp increase from the first half of this year when thick steel plates were sold at around KWR 700,000 per tonne, up by almost 65%.The report quoted a Posco official as saying that "We are still in negotiations and I think we can strike a deal at a reasonable level.”
Steel plates account for about one-fifth of shipbuilding costs and steel makers conclude separate deals with shipbuilders over prices of steel plates every half-year.
Korean shipyards achieved more than half of their annual target in the first half. Korea Shipbuilding & Offshore Engineering, the world's biggest shipbuilder by order backlog, won new orders for 156 ships and two offshore plants worth a combined USD 13.8 billion, accomplishing about 92 percent of its annual target of USD 14.9 billion. Korea Shipbuilding & Offshore Engineering is the holding company of three shipbuilders Hyundai Heavy Industries, Hyundai Samho Heavy Industries and Hyundai Mipo Dockyard.
Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries achieved more than 60% of their annual order target in the first half of the year.