South Korea's Hyundai Steel said on Thursday it would raise export prices of its major products for January and February, and the rise would continue as iron ore imports for the first-quarter were expected to cost 7-8 percent more at least.
South Korea's No.2 steelmaker next to POSCO (005490.KS: Quote) would increase its major steel products prices by $30 per tonne for January and February shipments mainly due to rising steel scrap prices, the company said in a statement.
"It is possible for prices of steel products to rise one more time early next year as bullish steel scrap prices are expected to continue and iron ore contract prices for the first quarter are seen rising a minimum of 7-8 percent," the statement said.
Rio Tinto the world's second-largest iron ore miner, will raise iron ore contract prices for Chinese steel mills by 7.6 percent in the first quarter of 2011, trading sources said last Friday, a move likely to be followed by other major miners Vale and BHP Billiton.
Key indices of iron ore are also underlining recent bullish tones. The Steel Index 62 percent iron ore benchmark .IO62-CNI=SI hit $168.50 a tonne on a cost-and-freight basis, or its highest since May 13, at the close of trade on Wednesday.
Hyundai Steel with an annual production capacity of 8 million tonnes of steel will raise prices of H-beams, used mainly in construction, and sheet pile to $750 per tonne on a cost-and-freight (CFR) basis on average for shipments to Southeast Asia, the statement said.
The steelmaker will charge $670 per tonne, CFR, for rebar shipments to Hong Kong, it added. (Reporting by Cho Mee-young; Editing by Jacqueline Wong)