Seoul: South Korea’s Posco, the world’s No.3 steelmaker, said on Tuesday that it would raise prices of its major stainless steel products by 5.5% for January to reflect improving market conditions and rising raw materials costs.
The company said prices for its hot-rolled stainless steel products would rise by 200,000 won ($174.1) to 3.8 million won per tonne in January, from December.
Posco said prices of nickel and other raw materials had risen recently and the South Korean won was softening, adding cost pressures.
“Overseas stainless steel mills are vigorously lifting prices, expecting demand recovery in the first quarter after production cuts and inventory adjustments in the fourth quarter,” Posco said in a statement.
In the domestic market, stainless steel prices had bottomed out and risen this month, and were expected to climb further, Posco said.
Posco cut December prices of its major stainless products for the first time in five-month because of sluggish local demand and price gaps with imported products.