South Korean steel makers Posco, Hyundai Steel and other steelmakers have reached an agreement with automaking majors Hyundai Motor Co and Kia Corp to increase fixed prices for supplies of automotive steel sheet by USD 45 per tonne.
The move is meant to reflect the increased costs of iron ore, which jumped to USD 199 per tonne on May 31, a sharp increase from US 97 last year. The last hike was made in the second half of 2017.
Hyundai Steel said it plans to hold negotiations with the big three shipbuilders Daewoo Shipbuilding & Marine Engineering Co, Korea Shipbuilding & Offshore Engineering Co and Samsung Heavy Industries Co in the coming weeks over a price hike of thick steel plates.
Korea Shipbuilding & Offshore Engineering manages three shipbuilding units – Hyundai Heavy Industries, Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries.