SKorea's POSCO to raise stainless steel prices

Seoul, Jan 24: POSCO Co Ltd, the world's third-largest steel maker, will raise prices of stainless steel products by 200,000 won (2.8) per tonne to reflect the higher cost of nickel, a key raw material, a company official said on Wednesday.

POSCO shares gained 3.04 percent to a record 322,500 won as of 0153 GMT, compared with a 1.2 percent gain in the main KOSPI Global prices of nickel have soared more than 10 percent so far this year, hitting a new high of ,300 per tonne on Tuesday, backed by growing expectations of supply shortage and speculative fund buying. Nickel prices jumped 140 percent last year.

Nickel, used as an anti-corrosive additive in making stainless steel, accounts for about 60 percent of the cost of making the popular 300-grade of stainless steel.

The South Korean steel maker will raise the price of 300-grade hot-rolled stainless steel to 3.71 million won per tonne, effective from Feb. 1 shipment, from 3.51 million won.

The price of 300-grade cold-rolled stainless steel prices would be raised to 3.98 million won a tonne from 3.78 million won.

POSCO raised the prices of its stainless steel products seven times last year.

Reuters