DSM(Dongkuk Steel Mill) is taking a lift in its minimum end price of H-beam on the Korean market, which will take place from July 2, by around 30,000 won a ton, set to finalize at least at 880,000 won a ton on a light gauge basis. DSM is known to pursue the normality in the H-beam price on distribution channels by the price increase at this time. The company’s official close to the matter said that, “It is necessary to prepare for the mid-year market conditions as well as to avoid the potential slippage through increasing pricing measures.”
DSM had issued its price increase policy in the middle of May for the H-beam minimum price, setting at 820,000 won a ton going into effect after May 29 and 850,000 won a ton which would be available after June 17 respectively. The consequence was to elevate the selling price of H-beam at the distribution channels hiked once up to the level of 850,000 won a ton entering into around mid-June.
Meanwhile, Hyundai Steel also brings in the H-beam minimum price increase again, expecting to set up additional base to the H-beam distribution price after mid- and late-June. According to the company official familiar with the issue, the company will set the H-beam minimum price at 880,000 won on a later-to-be-determined basis. This represents about 30,000 won a ton increase compared to the previous one. The company official said that, “There happened a cause to pull up the price by reason of furor over the iron ore as well as bullish scrap market assisted by the currently stronger foreign exchange rate.” Besides, the summer seasonal revamps scheduled after July is expected to cause some problems in the supply and demand status ahead, he added.
Hyundai Steel had implemented the minimum price increase to 850,000 won a ton after June 14, causing the distribution price to hike up to 850,000 won a ton. Many anticipate however the real price on the distribution market will need a considerable time to settle down.
Source: Steel&Metal News |
