October 28, 2009 / 7:56 AM / 10 years ago

UPDATE 1-S.Korea Hyundai Steel lowers steel product prices

* Rebar, H-beam, hot-rolled steel prices down by 50,000 won/t

* Expects rising imports of lower-priced steel from China

* Competitor POSCO says no plans yet to adjust price (Adds more details and POSCO’s plan to hold steel prices)

SEOUL, Oct 28 (Reuters) - South Korea’s Hyundai Steel (004020.KS) will lower steel product prices by up to 6.8 percent from November, expecting rising imports of lower-priced steel products from China, the firm said in a statement on Wednesday.

The move came after the country’s second-largest steelmaker in late August raised steel prices by up to 6.9 percent in its first increase in a year to reflect rising global steel and raw material prices. [ID:nSEO222171]

Prices of rebar, mainly used in construction, will fall by 6.5 percent or 50,000 won ($41.91) a tonne to 721,000 won and H-beam prices will also fall, by 5.5 percent, or 50,000 won, to 860,000 won. Prices of hot-rolled steel will decline by 6.8 percent, or 50,000 won, to 690,000 won per tonne.

“The adjustment can be attributed to falls in steel scrap prices and import prices,” Hyundai Steel said in the statement, adding that rebar was imported at $560-$590 per tonne this month.

“It is expected there will be rising inflows of lower-price steel imports along with falls in Chinese local steel prices.”

Its bigger rival POSCO (005490.KS), the world’s No.4 steelmaker, which made a surprise 20 percent price reduction in May and has yet to announce a similar move, is selling hot-rolled steel at a cheaper 680,000 won a tonne.

A POSCO spokeswoman said on Wednesday it had no plans yet to adjust its sales price. POSCO said it would also maintain its November stainless steel prices at this month’s levels, expecting domestic demand to pick up slightly up next month for restocking. [ID:nSEO277730]

Shares in Hyundai closed down 4.44 percent to 81,800 won, beating a 2.41 percent fall in the broader market .KS11. ($1=1193.0 Won) (Reporting by Cho Mee-young and Rhee So-eui; Editing by Clarence Fernandez)

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