Seoul: South Korea’s Posco, the world’s fourth-largest steel maker, has increased steel prices by up to 20.7% to pass on soaring prices of raw materials, it said Thursday.
The price rise, its second this year following a February increase, comes after Posco agreed to a 65% rise in iron ore prices with Brazilian miner Vale and a 205%-210% jump in coking coal prices with an Australian supplier from the beginning of April.
Posco said it would raise prices of its hot-rolled steel by 120,000 won, or 20.7%, to 700,000 won ($717.4) a tonne from 17 April.
Prices of both cold-rolled steel and shipbuilding plates will also rise by 120,000 won, or 18%, to 785,000 won a tonne.
Analysts had been widely expecting a rise of between 120,000 won and 150,000 won, as Posco has lagged rivals in raising prices and as iron ore and coking coal prices, which account for more than a fifth of production costs, are seen soaring by around 70% and 200% respectively this year.