S.Korea POSCO to raise stainless steel prices

Seoul, Feb 23: POSCO Co. Ltd., the world No.3 steel maker, will raise prices of stainless steel products by 240,000 won (5.7) per tonne, or some 6 per cent to reflect soaring nickel prices, a company official said on Friday.

This would be the second time POSCO has raised stainless steel prices this year, after raising prices seven times in 2006.

Global prices of nickel have soared almost 20 per cent so far this year, hitting a new year high of ,250 per tonne on Wednesday, helped by supply shortage. Nickel prices jumped 140 per cent last year.

The South Korean steel maker will raise the price of 300-grade hot-rolled stainless steel to 3.95 million won per tonne from 3.71 million won, effective from March 5 shipments.

The price of 300-grade cold-rolled stainless steel prices would be raised to 4.22 million won per tonne from 3.98 million won, the official said.

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

Reuters