South Korea: POSCO raises March stainless steel prices on higher alloy costs

• • Global uptrend and FX pressure drive revision:

• • Strong dollar pressures imported alloy costs:

POSCO has increased stainless steel shipment prices for March, citing rising alloy raw material costs and exchange rate pressures. The company lifted 300-series prices by KRW 100,000/t ($68/t) and 400-series by KRW 50,000/t ($34/t). Prices for 316L Extra were also raised by KRW 100,000/t ($38/t).

The revision reflects sustained cost-side pressure. Nickel prices have fluctuated around the $17,000/t mark, while ferrochrome and molybdenum markets remain firm. In addition, the stronger won-dollar exchange rate has increased the burden of imported alloy inputs, tightening mill margins.

316L surcharge mechanism under development:

POSCO plans to introduce a formal surcharge pricing system for 316L Extra, though the detailed calculation formula is still under review. Given the high molybdenum content in 316L grades, the move aims to better align selling prices with alloy cost volatility and improve transparency in price pass-through.

Global cues support domestic hikes:

International stainless markets are also trending upward. European mills have increased March surcharges by Euro 136-157/t. In Asia, TISCO raised 316L Extra prices to $1,900/t, while Tsingshan reportedly lifted offers by $100-200/t to around $1,700/t.

Market participants noted that accumulated cost increases from January and February were not fully reflected earlier, making the March revision largely unavoidable. However, weak domestic downstream demand may challenge full pass-through at the distribution level.

Outlook:

Further price adjustments will depend on alloy trends, FX movement and end-user demand recovery. Sustained strength in nickel and molybdenum could support additional revisions, while sluggish domestic consumption may cap upside momentum.