South Korea’s steel industry will increase prices for general steel products starting January, driven by a sharp rise in the KRW-USD exchange rate and soaring import raw material costs. This marks a shift from earlier price cuts made to counter weak demand, according to a local newspaper report.
In November, domestic HRC manufacturing costs were around KRW 700,000 (USD 483) per ton but have risen to approximately KRW 730,000 (USD 504) per ton due to higher costs of imported raw materials, primarily paid in U.S. dollars. Key inputs like iron ore and raw coal are sourced from Australia and Brazil.
Posco has announced a KRW 30,000 (USD 21) per ton price hike for HR coils and sheets, with Hyundai Steel likely to follow suit. These adjustments come amid added pressure from increased industrial electricity rates.
Previously, South Korean steelmakers avoided price hikes to compete with lower-priced steel from China and Japan. However, the current economic environment has made price increases a necessary step to address unprecedented cost burdens.
1 USD / 1,448.48 KRW
