POSCO is confirmed to now consider increasing the offering price for CHQ wire rod ahead of entering the second quarter, in attempt to secure profitability on the sharply risen raw material prices most lately. However, the consumers industry stick to a cautious position in doing so.
The Korean price of CHQ wire rod has been increased 20,000 won per ton during the final quarter last year. However, the reflection on the market was a flop, worsening the profitability.
In particular, the final end-users, finished car industry, resists against the price increase, while the fasteners industry tried to switch the burden to the purchasers instead. All in all, the price increase which was tried previously resulted in vain as the drawers which buy wire rods directly from POSCO agreed to bear the burden.
Source: Steel&Metal News |