Hyundai Steel Co., South Korea's second-biggest steelmaker, said Tuesday it will raise the price of hot-rolled sheets starting from next month as China is set to tackle oversupply in its steel industry.
The affiliate of Hyundai Motor Group said it will increase the price of hot-rolled sheets by 50,000-70,000 won ($42-58.70) per ton next month, which comes after a 30,000-won hike in April.
The price of hot-rolled sheets was 650,000 won per ton last week, and had stayed in the same range for three consecutive weeks.
A hot-rolled sheet is made by rolling the steel at a high temperature, which is used to make items like rail tracks, pipes, I-beams and guard rails.
The latest move comes as China, the world's largest steel supplier, is pushing to cut a steel supply glut in the face of increasing international pressure.
The price hike is expected to affect other Korean steelmakers as industry leader POSCO has been closely watching the Chinese market after it raised the price of hot-rolled sheets by 20,000-30,000 won per ton in the first quarter.
Hyundai Steel, which produces 24 million tons of steel annually, supplies 30 percent of the overall automotive steel consumed by two captive buyers Hyundai Motor Co. and Kia Motors Corp. each year.
Source : koreaherald.com