Korea's color pre-coated steel sheet industry finally agreed with the home appliance producers to increase offering price beginning October by 50,000 won per ton around, the industry source delivered. For a while as yet, the material that is used for construction steels could continue to be raised, but the price for those that are consumed for the home appliance production could on;y fall short of agreeing to the increase.
Domestic color sheet producers are said to cling to the position that needs for the price increase at all costs for the fourth quarter delivery, in company with the upward trends of the starting material costs. That being said, the industry will not easily to be able to yield profits, the industry people said. The price of the starting material – HR – increased by 120,000~130,000 won per ton for the October shipment. Subsequently, the color sheet price agreed this time does not fit to address the cost burden, they added. In addition, POSCO seems to ponder additional 20,000 won per ton increase targeting the real end-users over the next month.
Under these circumstances, domestic color sheet producers are likely engaged in the price increase for the construction steels ahead. The industry had lifted a total of 100,000 won per ton by increasing in August and September by 50,000 won per ton each. However, it is said that the market could only respond to the increase by 60,000 won per ton level, thereby the industry is pushing for further increase within October.
Domestic sales volume for color sheet has been increasing from June through September, applying to secure the profitability ahead regardless of customers. Therefore, they are exerting to drive up the sale price for a while ahead toward home appliance producers and construction companies alike. Home appliance producers showed a little bit resistance to the price increase, but concluded to accept it given the continued declines in prices as yet, the industry people said.
Source: Steel & Metal News
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