Shipbuilding industries and steel players have started thick-plate price negotiation for the fourth quarter. Shipbuilders are told to demand additional price cut.
Although POSCO slightly cut down thick-plate price for Q3, shipyards see that prices still do not reflect declined prices of international iron ore.
POSCO lowered the Q3 prices by KRW 10,000-20,000 ($18.1) per ton, bringing retail prices up to around estimated in KRW 800,000.
Steel players insist that as they have reduced the prices in the third quarter, they need to wait for couple of quarters before adjusting prices.
But sources say that due to oversupply of steel products and decrease in prices of raw materials, thick-plate prices will be eventually lowered.
Published : October 22, 2012