South Korea's major ship board suppliers collectively raise prices again in two months

South Korea's major shipbuilding suppliers, Posco, Hyundai Steel and Dongguk Steel, have recently raised their steel prices from 50,000 won per ton to 95,000 won (US$774) per ton. It is reported that the price increase took place in May this year, when Korean steel companies increased the plate price to 80,000 won per ton, only two months later. The interval was very short.

South Korean shipping companies are full of worries and fear that if the domestic steel plate prices continue to rise, their profits will be further hit. Since the import of steel plates from Japan in the second quarter of this year has been substantially reduced, the stocks of steel plates of Korean shipping companies have been decreasing. It is understood that at present, 30% of the steel plates required by Korean shipping companies are imported from Japan.

Insiders pointed out that the increase in prices of South Korean steel companies deviated from the downward trend in international steel prices. However, South Korean steel companies explained that price increases are inevitable due to rising iron ore prices. Steel companies also pointed out that “Although we have increased the price of steel plates, we are still at a low level compared with the prices in the international market.”