Stainless Steel Me

South Korea’s POSCO said Monday it would raise domestic prices of stainless steel by up to 7.1 percent in its second price hike in just one month to reflect improving demand and rising raw material costs.

POSCO, the world’s No.6 steelmaker, said prices of hot-rolled stainless steel would rise by 7.1 percent, or 200,000 won, to 3 million won ($2,387) a tonne, while cold-rolled stainless steel would increase by 6.5 percent to 3.27 million won starting July 27.

In late June, the company raised prices of the rust-proof metal used in products ranging from kitchenware to machinery and aircraft components by up to 10 percent.

POSCO, which saw its stainless steel business swing to a loss in the first quarter, said last week that the division turned profitable in April and was expected to remain profitable in the second half, as prices were recovering along with an overall improvement in the global steel industry.

Cold-rolled stainless steel is trading at around $2,550 a tonne in China, up some 36 percent from April lows, thanks to a demand pick-up following the government’s nearly $600 billion economic stimulus plan.

POSCO produced 585,000 tonnes of stainless steel in the first half of this year.