In South Korea, the price of steel, known as the "Industrial Rice," has recently continued to rise. Because steel is the raw material for manufacturing durable consumer goods such as automobiles and home appliances, many consumers worry that price increases will eventually be transferred to them.
The reporter of CCTV Finances "First Time" column visited some home appliance stores and learned that due to the shortage of chips spreading to the home appliance industry, TVs of brands such as Samsung were originally brewing price increases. Now that the price of steel has risen again, household appliances such as refrigerators and washing machines, which use more steel, are also beginning to face price increases.
Since the beginning of this year, due to the increase in global iron ore prices, South Korean steel giants have followed up with the increase in product prices, and the construction industry with tight schedules has suffered the most direct impact.
In addition to construction steel, hot-rolled steel plates for automobiles and furniture, and thick steel plates over 6 mm for shipbuilding, the current price per ton has exceeded 1.3 million won, or about 7,500 yuan, which is nearly an increase from the beginning of the year. 50%. The iron ore required by the Korean steel industry is almost entirely dependent on imports, and the international iron ore price has risen by about 80% since the beginning of the year, leading to a surge in the price of Korean steel products. In order to reduce the cost burden, South Korean steel giants such as Pohang Steel and Hyundai Steel have successively announced to increase the prices of steel products.
Due to strong demand for steel in construction, shipbuilding and other industries, South Korea’s largest steel company Pohang Steel has already filled its orders in the first half of this year. From June, major Korean steel companies, including Pohang Steel, have increased the prices of major products such as steel plates for automobiles by at least another 100,000 won, or about 570 yuan, per ton.
South Korean analysts pointed out that as the market for iron ore will continue to rise, it will take a long time for the price of hot steel to return to the previous level.
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