The Korean structural tubing producers entered into the price increases available for June, wresting to address the portion of the cost-push on the product price before the starting of the summer off-season.
According to the structural tube industry, the producers are struggling to come out of the loss sales structure while reflecting the portion of the risen starting materials, like hot coils, materializing to reduce discount rate by 3~5 percent. The structural tube industry had failed in March and April to reflect the price increase by reason of business depression and competition among themselves.
Although they are trying return to normality by increasing their sales prices in June, the construction business is hardly rebounding ahead of the summer off-season. In addition, Chinese HR offers into Korea fell even $40 a ton in a month, lowering the momentum of the price increase.
Nevertheless, many of the industry worry that the industry will face deficit if failed to reflect the price increases as in the previous months. The industry will exert all endeavors to increase prices before the beginning of the summer off-season, the industry people said.
Source: Steel&Metal News |
