POSCO cuts product prices by up to 17 percent

POSCO, the nation`s largest steelmaker, said yesterday it will cut the prices on 13 steel products by up to 17 percent from next year to protect the domestic market from cheap Chinese products.

Just three months after a price reduction on 11 products, the company said it gave smaller price cuts for high-end products as they require relatively more research and development investment.

The price of high-end hot-rolled coil was lowered by 50,000 won to 500,000 won while the prices of general hot-rolled coil and mini-mill hot-rolled coil were reduced by 70,000 won and 85,000 won to 480,000 won and 450,000 won, respectively, POSCO said.

The steelmaker`s high-end cold-rolled sheets that require more processing will be sold for 600,000 won, down 50,000 won, while the more common ones are sold for 580,000 won. The price of nonoriented magnetic steel sheets was also cut by 122,000 won to 585,000 won.

Such polarization has become a global trend as China`s Baoshan Iron & Steel Co. recently increased the price of its thick plates for shipbuilding to $70 per ton while expanding the price gap between low-end products and steel sheets for autos to $60. Baoshan lowered the price of its hot-rolled coil last month from $479 to $369 per ton.

"We hope the price reduction helps our customers who have suffered from sluggish demand and high oil prices," a POSCO official said.

Chinese steel imports in the 10 months to October jumped 79.1 percent compared to a year ago while exports to the neighboring country dropped 5.2 percent.

(sophie@heraldm.com)



By Kim So-hyun