Korean metallurgists decided to raise prices for metal rolling

The main Korean metallurgical companies have decided to increase the prices for metal rolling. The basis for this they call an increase in the cost of scrap metal and a reduction in the profitability of metallurgical production. A noble desire to earn can stumble upon a misunderstanding of the main consumers of the sluggish steel market, the messenger of Korea writes today.

A statement of rental prices for 20,000 Korean won (KRW) or US dollars made two metallurgical companies in South Korea at once: Hyundai Steel and Dongkuk Steel, the second and third for the production of metal products. According to the Association of Chugun and Korea, the mentioned enterprises control most of the country's domestic market in the supply of construction metal production.

"The rise in prices is actually simply inevitable, since we have reached the extremely low level of profitability by reducing steel prices," said the representative of the Hyundai Steel.

The recent innovations of the Korean government in the field of energy conservation had a negative impact on the cost of metallurgical products, which ultimately led to the rise in price of final products, he added.

New prices will enter into force until the end of August, although their final level is still the subject of discussion.

Meanwhile, the largest Posco permacer is cautioned in matters of price growth: “Although we are faced with rising prices for raw materials, this does not mean that we should immediately raise prices for our products,” the representative said.

Vaughn in dollars today: 1 won (KRW) is 0.000894 US dollar (USD) 1 US dollar (USD) is 1119.139069 Vaughn (KRW).