Due to large demand especially from Asia, raw materials are rapidly becoming more expensive. Fears are mounting that key steel makers will pass on their higher costs to buyers. As a result, shares of shipbuilders and automakers were lower as investors reacted to the possible increase in steel prices.
Brasilian mining company Vale increases their prices by 65 per cent, which means that as of 1 April Nippon Steel and Posco will pay a record amount of US 78,89 dollar a ton for iron ore. The price increase follows earlier rises of 19 and 10 per cent in 2006 and 2007 respectively. British-Australian mining company Rio Tinto is also negotiating new prices for iron ore.
Investors expect that steel makers will up their prices accordingly. This caused shares of Hyundai Heavy Industries, Hyundai Motor, Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Kia Motors to drop by 0.5 to 1.9 per cent.
Source: https://www.staalnieuws.nl/leesverder.php?nID=436&part=1&PHPSESSID=0b1e7ef59496464df4978252c9fab0a9[Staalnieuws.nl] and https://www.maritimetoday.com/ShowStory.aspx?StoryID=210929[Maritime Today]
