Conflicts between Steel Makers and Shipyards Grow over Thick Plate Prices

Thick Plate PricesThe conflicts between steel companies and shipbuilding companies are growing over the increase in thick plate prices. Thick plates refer to the steel products with a thickness of more than 6 millimeters which are used mainly for the construction of ships. 


The thick plate price negotiation between the two parties, which should have been finished before June, remains unsettled until mid-August. 


According to industry sources on August 15, Korea’s major shipyards such as Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding & Marine Engineering have failed to complete the negotiation with the major steel companies such as POSCO, Hyundai Steel, and Dongkuk Steel over the increase in thick plate prices. 


Sources close to the situation said, “The two parties have no intention to concede at all, making it difficult to predict when such negotiations could be ended.” The steel companies claimed that it is inevitable for them to raise the thick plate prices since the prices of iron ore, the main ingredient for steel products, rose 41 percent. 

The Original Posted by dodo@hankyung.com