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HHI to pay higher price for steel

HHI to pay higher price for steel

Seoul: Leading shipbuilder Hyundai heavy Industries has agreed to a $20 per tonne price rise for steel plates supplied by Japan-based JFE Steel Corporation, reports Bloomberg. The price rise, which the market was expecting, is expected to set costs at approximately $650 per tonne.

HHI is expected to import close to 800,000tonnes of steel from Japanese sources. The cost is believed to have already been factored into new contracts signed by the yard.

 Shipbuilding is at an all time high, with most yards around the world booked solid for the next two years. The high costs have failed to act as a deterrent to this extremely bullish market. However, analysts are optimistic that the high demand will spur steel manufacturers into increasing production thus stabilising prices.  [03/09/07]