By Sungwoo Park
March 18 (Bloomberg) -- Hyundai Steel Co., South Korea’s second-largest steelmaker, cut the price of hot-rolled coil by 14 percent on weak demand, the first reduction the company has made this year on its products.
The price was reduced to 880,000 won ($618) per metric ton from 1.02 million won, Chang Young Sik, a spokesman at the Incheon-based company, said today by the phone. The cut took effect earlier in the month, he said, without giving details.
Steel prices in China, the world’s largest consumer, have fallen nearly 10 percent this year on oversupply, spurring calls by Beijing’s Shougang Corp. for mills to cut output by 20 percent. Hyundai Steel in January said sales and output will drop because of the global recession.
Hyundai Steel sells hot-rolled coil to oil pipeline makers, builders and automakers including Hyundai Motor Group.
Separately, the company signed a contract with Welspun Gujarat Stahl Rohren Ltd. in India to supply 100,000 tons of steel sheets for oil pipeline manufacturing this year, it said in an e-mailed statement.
Hyundai Steel gained 0.9 percent to 39,250 won at 12:35 p.m. in Seoul trading, compared with a 0.2 percent gain in the benchmark Kospi stock index.
To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net.
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