As per latest customs data, South Korea flat steel exports which includes 7208 (HR coils /Plates),7209 (CR coils),7225 (Electrical sheets),7210/7212 (GP/GC) witness decline by 4% to 10.77 MnT in H1CY18 against 11.24 MnT in H1CY17.
However on monthly basis the same inch down by 1% in Jun’18 to 1.79 MnT against 1.81 MnT in May’18.
Similarly on-yearly basis nation’s flat steel exports went down by 2% to 1.79 MnT in Jun’18 which was 1.82 MnT in Jun’17.
Nation’s flat steel exports witness decline post imposition of USA tariffs- South Korea is the third-largest steel exporter to the United States and the world’s top importer of Chinese steel. After the tariffs announcement, U.S. and South Korea revised their free trade agreement KORUS under which South Korea is forced to cut its steel exports to the U.S. by 30% of past three years average, in exchange for becoming the first U.S. ally to receive an indefinite exemption on steel tariffs imposed by Trump.
The country has received a quota of about 2.68 MnT of steel exports which is 70% of the annual average of Korean steel exports to the U.S. between 2015-2017. Any quantity exceeding this quota will be imposed with harsh tariffs of 25%.
With the recommendation of Section 232 by U.S.’s Commerce Department, the highest impact is likely to be seen in South Korea which is country’s largest steel exporter followed by Turkey and Japan.
Sub Commodity wise Flat Steel Exports in H1CY18
| Sub Commodity | H1 CY18 |
H1 CY17 |
Change in % |
June’18 | May’18 | M-o-M ( Change in %) |
| HRC/Plate | 3.97 | 4.52 | -12.16 | 0.73 | 0.71 | 2.8 |
| Galvanized Steel | 3.54 | 3.43 | 3.20 | 0.55 | 0.59 | -6.8 |
| CRC | 1.94 | 1.99 | -2.51 | 0.31 | 0.3 | 3.3 |
| Electrical Steel | 1.15 | 1.15 | 0 | 0.17 | 0.19 | -10.5 |
| Others | 0.18 | 0.14 | 28.57 | 0.03 | 0.03 | 0.0 |
| Grand Total | 10.78 | 11.23 | -4% | 1.79 | 1.81 | -1% |
Quantity in MnT
Source-SteelMint Research
Country-wise flat steel exports in H1CY18- China stood as the largest flat steel importer of South Korea and has imported 1.68 MnT of flat steel in H1CY18 lower by 8% against 1.82 MnT in similar time frame of previous year.
Second largest importer was Japan which stood at 1.51 MnT in H1CY18 moved down by 3% against 1.55 MnT in H1CY17.
Similarly India procured 1.24 MnT, Mexico at 0.84 Mnt,Thailand at 0.64 MnT followed by United states 0.55 Mnt ,Indonesia at 0.43 MnT and Vietnam at 0.49 MnT in H1CY18.
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