Posco thick over new prices for July-September
Posco is currently considering its new quarterly prices for July-September and expected to announce its decision by 20 June. The company is under pressure because their production costs, especially raw material prices, are expected to increase from the April-June quarter. On the other hand, demand from both of domestic and export markets has been weakening. Consequently, Posco will face more difficulty to pass the additional cost to its customers.
Furthermore, the change in the iron ore pricing system has led Posco to impose its first quarterly prices in the past 40 years. And the company has to be more cautious with its decision because that will impact downstream industries. According the Posco’s assumption, July-September prices will increase by 25% q-o-y for Vale’s iron ore and by 23% for BHP Billiton’s and Rio Tinto’s iron ore.
