Chinese demand drives up prices of iron, steel

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Chinese demand drives up prices of iron, steel

Posco, the world’s third-largest steelmaker, will raise domestic prices on some products by as much as 7.1 percent April 19 because of higher iron ore costs.
Posco will raise the prices of its steel plates used in ships by 3.4 percent to 605,000 won ($643) per metric ton and raise prices of steel plates used in construction by 3.2 percent to 640,000 won per ton, the Pohang-based company said in an e-mailed statement yesterday. The steelmaker will raise prices of electrical steel by 7.1 percent to 3.3 million won per ton.
Steel prices are rising as the cost of iron ore, a key raw material, has risen for five consecutive years to a record high, on higher demand from China, the world’s largest user and producer of the metal. The price of U.S. sheet steel rose for the first time in eight months in March, and Arcelor Mittal, the world’s biggest mill, will raise sheet steel prices starting this month.
“We are raising prices because global steel prices are rising and higher iron ore prices will be reflected in costs starting April 1,” Posco said.
Steelmakers and mining firms such as BHP Billiton Ltd. and Cia. Vale do Rio Doce will raise iron prices by 7.5 percent April 1. Scrap steel prices rose 65 percent to about $380 a ton in the fourth quarter of last year, Posco said.
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