Soaring Iron Ore Prices... Government and Industry Struggle to Devise Countermeasures

[Sejong=Asia Economy Reporter Kwon Haeyoung] As steel raw material prices have recently surged, the government is reviewing the steel industry and market conditions and preparing countermeasures.

According to the Ministry of Trade, Industry and Energy on the 11th, they will meet with the Korea Iron & Steel Association, POSCO, Hyundai Steel, and others to monitor the supply and demand situation of steel products by item. On the 13th, it is reported that demand organizations such as machinery, shipbuilding, and equipment will be convened to listen to their difficulties.

Recently, iron ore prices have been hitting record highs every day. On the 6th, the price at Qingdao Port, China (CFR) surpassed $200 per ton for the first time, and on the next day, the 7th, it recorded $212.24, exceeding $210 again in just one day. This is due to increased demand as countries around the world implement economic stimulus measures and production cuts caused by China's strengthened environmental policies. As raw material prices rise, domestic steel companies are also reflecting this in their product prices.

Earlier, the Ministry of Trade, Industry and Energy ordered the steel industry to fully operate production lines to supply sufficient quantities to the market. It is reported that steel companies are already running production lines at full capacity and diverting some export volumes to domestic supply. However, since the surge in steel raw material prices is a global phenomenon and the government cannot control market prices, there are no effective countermeasures.

This content was produced with the assistance of AI translation services.