Mining News Pro - According to market sources, the South Korean special steel manufacturers that use EAFs (Electric arc furnaces) for production are likely to increase their product prices starting from Sep’18 in response to rising raw materials such as scrap, graphite electrodes (GE) and alloy steel prices.
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According to Mining News Pro -According to market sources, the South Korean special steel manufacturers that use EAFs (Electric arc furnaces) for production are likely to increase their product prices starting from Sep’18 in response to rising raw materials such as scrap, graphite electrodes (GE) and alloy steel prices.

Amongst all the raw materials, the increase in GE prices is quite significant. This is because South Korea is majorly dependent upon imports to meet its graphite electrode requirement and the global graphite electrodes prices have been rising dramatically since the latter half of 2017.

The imported GE prices in South Korea which were trending at USD 11,000/MT in Q2 CY18 are expected to touch USD 14,000 to 15,000/MT by the end of ongoing third quarter of CY18.

The South Korean steel major Hyundai Steel has announced that it will increase its rebar prices by 45,000 won per tonne (USD 398/MT) in the fourth quarter starting from October 2018 thus reflecting the rising scrap prices of 20,000 won/MT (USD 177/MT) and electrodes prices of 25,000 won per tonne (USD 221/MT). With the increase in its rebar prices, the company wants to improve its profitability.

In case of end users that includes construction companies and automobile sector, the manufacturers have already made price adjustments for increase in scrap and alloy steel prices, however, the surge in GE prices have not been taken into account and now given the rising GE prices, they will also be required to make the price adjustments for their products for the coming quarters.

In the first seven months of 2018, South Korea imported about 25,067 tonnes of graphite electrodes, an increase of 4% against the corresponding period of the previous year. The highest imports were made from Japan at 13,066 tonnes followed by China at 7,563 tonnes and India at 1,734 tonnes. In 2017, the country had imported about 44,612 tonnes of graphite electrodes.

 


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