|In 2018, POSCO resulted in a disappointing setback in its tries to raise the sales price, having no alternative but to freeze its stainless steel price over the seven months from the mid-year earlier through January this year on streak. In 2017, the stainless steel price hiked over two folds those of carbon steel products, but entering 2018, the situation changed into a notable weakness to trade for the price which was far lower than the carbon steel products.
According to the materials handed out at the investor relations conference, the stainless steel product sale price rose only 30,000 won per ton compared with those of 2017, accounting for even a decline of 89.8 percent from the hikes as much as 293,000 won in a year. In a simple count, the 2018 stainless price was 263,000 won per ton lower than 2017. There was no exception on the carbon steel product prices. In 2018, POSCO’s carbon steel product price was only lifted by 42,000 won per ton, representing the 66.4 percent down versus 2017 when the hike of 125,000 won per ton posted. In a simple calculation, the 2018 price level was short of 83,000 won per ton compared with the 2017 price increasers.
Meanwhile, POSCO’s production and sales volume increased slightly, but the stainless sales share reduced a little bit compared with the carbon steel products sales weight. In 2018, POSCO produced 2,033,000 tons of stainless steel products, higher by 0.2 percent from 2017 of 2,028,000 tons. In the same period, stainless product sales volume gained 0.2 percent year on year to 2,001,000 tons, resulting in a 5.62 percent share and accounting for a 0.13 percentage point decline from 2017 of 5.75 percent share.
Source: Steel&Metal News