Posted on 09 Jun 2008
Maeil Business Newspaper said citing industry sources that
POSCO could raise domestic prices as early as in June, and predicted a hike of
15 percent, or around 100,000 won ($97) per tonne. POSCO sells three-quarters
of its products at home.
POSCO denied having any immediate plans for a price
increase.
"We have no current plan to raise steel prices,"
said Choi Doo-jin, a POSCO spokesman. "We are closely monitoring market
conditions."
Shares in the South Korean steel maker were down 0.5 percent
to 582,000 won by 0123 GMT, outperforming the wider market's 2 percent drop.
POSCO raised prices by as much as a fifth on April 10, but
expectations for a further hike have been high as its prices still lag those of
Chinese or smaller domestic rivals such as Hyundai Steel.
Despite rising prices of raw materials such as iron ore and
coking coal, POSCO has kept its hikes minimal to maintain good relations with
customers.
Potentially adding to the cost burden, the Chosun Ilbo daily
reported in a separate article on Monday that Australian miners Rio Tinto and
BHP Billiton asked East Asian steel makers including POSCO for a price hike of
nearly 100 percent in iron ore, citing unnamed Chinese media.
POSCO said it was not aware of such talks. ($1=1031.0 Won)
