POSCO says no plans for a price cut after Bao move
SEOUL, Aug 26 (Reuters) - POSCO said on Tuesday it had no immediate plans to lower steel prices after its Chinese peer Baoshan Iron and Steel (600019.SS) cut its fourth-quarter sales prices for cold-rolled steel products on Monday.[ID:nSHA365342]
Boasteel, the listed unit of China's largest steel mill, announced its first cut in a year as the demand outlook weakens in China's auto and home appliance sectors.
"We have no plans for a price cut," A POSCO (005490.KS) spokeswoman told Reuters.
The world's No.4 steelmaker had said earlier this month that it would cut stainless steel prices by up to 10 percent, reversing two earlier price hikes this year.[ID:nSEO92417]
"Prices of stainless steel are subject to changes, but there are no such plans for other lines of products," she added.
Shares in POSCO nonetheless retreated on weakness in the won which touched a fresh four year low against the dollar, raising worries about importing costs of raw materials and foreign currency-denominated debts.
"POSCO's steel prices are still competitive compared to its international peers, so pricing worry is the last concern," said Kim Hyun-tae, an analyst at Goodmorning Shinhan Securities.
"However a weakening won currency will surely dent its operating and pre-tax income, and this is weighing on the shares today."
POSCO was trading 0.97 percent lower at 460,000 won, against the broader market's 0.49 percent drop as of 0230 GMT.
