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sourceChina Steel News
publisherGloria Wang
time2017/09/27
Recently, several major shipbuilders and steelmakers in South Korea have negotiated steel prices for several weeks, but the two sides still face major differences.
The Korea Offshore & Shipbuilding Association urges Posco and Hyundai to lower the price of heavy steel for shipbuilding and adds that local shipyards are struggling for their own product prices to fall and competition intensify Struggling.
The association said that since the end of last year, the price of iron ore has been in the previous two consecutive years of decline. Its call to the South Korean steel industry to reconsider the price increase plan, because it may further damage the shipbuilder's profitability.
It is reported that thick steel plate accounts for about 20% of shipbuilding costs, which means that the price changes will have some impact on the shipbuilder. Hyundai Heavy Industries and other large shipyards in recent years has been at a loss, therefore, the urgent need to reduce costs to maintain operations.
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