Hyundai Steel says to raise hot-rolled plate price

SEOUL Feb 25 (Reuters) - Hyundai Steel (004020.KS), South Korea's second-largest steel maker, will increase prices of hot-rolled coil from March, reflecting higher raw material prices, the steel maker said on Monday.

Local media reports said on Friday the company was making the increase.

The unit of Hyundai Motor Group (005380.KS) will increase prices by 60,000 won ($63.35) a tonne, or 9.4 percent, to 700,000 won per tonne, a company spokesman said. The company had recently raised the prices by 60,000 won in January.

The rise came as prices of steel scrap increased to $490 a tonne in February, compared to $380 at the end of last year, the spokesperson said.

Hyundai Steel is not equipped with facilities to use iron ore, the most commonly used feedstock to manufacture steel products. Instead, it uses steel scrap or slab, considered secondary-products, to make hot-rolled coil.

Brazilian mining giant Vale last week agreed a 65 percent jump in iron ore prices with Japanese and South Korean steel makers. (Reporting by Angela Moon; Editing by Keiron Henderson)