S.Korea POSCO announced to adjust down all steel products prices

S.Korea POSCO announced to adjust down all steel products prices  After the adjustment, POSCO HRC reduced 20% to 680,000 Won per ton (U.S.$545), cold-rolled coil price dropped 16% to 785,000 Won per ton (U.S.$629) and the ship plate price was down 11% to 820,000 Won per ton (U.S.$657). The aforesaid is carried out from May 15.

This price cut may cause POSCO sales to drop 2.7trl Won, but the company reduced the cost of 1.3trl Won by taking measures, so its earnings can be guaranteed. POSCO spokesman expressed that it originally plans to adjust down steel prices after July, but the price cuts earlier the plan will help relieve cost pressures of the domestic consumers.

The author analyses POSCO price cuts have two reasons excluding reduction in cost. On one hand, with the Won appreciation, S.Korea steel imports have the sign of growing and Taiwan and Japan steel mills both exported a large of flat products to S.Korea with lower price, which brought much pressure on POSCO, even to plan to put forward the application of anti-dumping policy.  On the other hand, in order to relieve the domestic demands and pressure, POSCO also formerly exported many flat products with lower price than its domestic market, which arouses the discontents of the domestic consumers and they request POSCO to reduce prices in successive.