South Korean steel giant POSCO said that it will keep domestic steel prices unchanged in the first quarter of 2011 from this quarter despite a rise in raw materials costs, reflecting stagnant demand.
As per report, Hot rolled coil would stay at KWR 900,000 per tonne (USD 780).
POSCO said in a statement on Wednesday that “We have decided to keep domestic prices for the first quarter of next year flat. We think we can overcome the burden by internal cost cuts, although prices of raw materials including iron ore are strengthening along with recovering global economies.”
It added that “POSCO would be more flexible in pricing steel products from next year, while dropping the quarterly pricing system.”
Asian steel mills are grappling with slowing demand from China, the world''s biggest steel consumer, as its economy cools with the winding down of Beijing''s stimulus measures.
POSCO faces rising domestic competition and oversupply from smaller rival Hyundai Steel Co which in November started its second blast furnace, boosting annual capacity by about 25%.