Price for private sector maintains 800,000 won per ton despite sluggish demand The selling price of steel pipe piles for the Public Procurement Service (PPS) was set at 740,000 won per ton (based on loading onto trucks) through free negotiations between the pile makers and the PPS. Thus, Dongbu Steel and Tong Yang Steel Pipe which were classified into the first group at the price decision at the PPS have become to supply a total of 18,000 tons of steel pipe piles, that is, 9,000 tons each for Kyunggi-do and a part of Kangwon-do. Hyundai HYSCO and Korea Cast Iron Pipe, which belong to the second group, will supply 9,000 tons and 18,000 tons, respectively, to Kyungsangnam-do, andHUSTEEL in the third group was decided to deliver 7,000 tons to Honam zone. Only successful bidders were decided May 28 at the bid for the supply of steel pipe piles to the PPS for the government use and the related contracts will be made in the second week of June. Accordingly, overall demand for steep pipe piles is expected to show a temporary rise in the market, even though demand from private sector is in a slump without any particular change. The bids for the supply of steel pipe piles to the PPS have failed six times since December 2002, and the previous selling price of steel pipe piles supplied to the PPS was 460,000 won per ton excluding freight charges. Compared with last year, the selling price of steel pipe piles increased this year in accordance with the raw material coststhat advanced twice. Steel pipe piles have been a considerable headache of makers since mid-2002 due to the difficulties in securing profitability particularly in connection with the price matter in the supply to the PPS for the government use. Sales of steel pipe piles, which led the demand for whole steel pipes in the fourth quarter of 2003, continued to be brisk at home and abroad until the beginning of this year, but have contracted since the first quarter of the year due to oversupply and rises in raw material costs. However, demand for steel pipe piles is expected to grow high inthe second half of the year particularly duringthe highest-demand period from September through November, even though there is not any specific large consumer except for the PPS at present. Demand for steel pipe piles accounts for about 10% of the total demand for steel pipes, and steel pipe pile makers sell more than 55% of their whole piles during the seasonal high demand period in the second half of each year. Meanwhile, they are reportedly takingorders at the price level of 800,000 won per ton in the market at present. jieun@snmnews.com