As per latest customs data released, South Korea flat steel exports which includes 7208 (HR coils /Plates),7209 (CR coils),7225 (Electrical sheets),7210/7212 (GP/GC) registered a marginal decline of 3% in CY18 to 21.47 MnT compared to 22.19 MnT in CY17.
On Y-o-Y basis also nation’s flat steel export volumes decline by 10% to 1.62 MnT in Dec’18 against 1.81 MnT in Dec’17.
Nation’s steel exports decline over imposed restrictions from USA and Europe – Steel exports face quotas in the United States and the prospect of high tariffs in the European Union.However nation has been exempted from USA tariffs but the deal is not entirely favorable towards South Korea: It sets an annual import quota of 2.68 million tons, equivalent to 70% of the average of steel exports to the US over the last three years.
Thus South Korea will be forced to cut its steel exports by 30% in past three years in lieu of getting exemption from USA steel tariffs.Thus South Korea is not allowed to export steel products exceeding that quota to the U.S. Market.
Meanwhile European Commission has imposed tariff quotas on imports of 23 product categories for a period of 200 days from the entry into force of this regulation.These mean a 25% tariff will be levied on EU imports that exceed a global quota based on the average tonnage from 2015-2017.Also European Union (EU) will continue its restrictions on the imports of steel into South Korea until July 2021.
On monthly basis country’s flat steel exports remain largely stable at 1.62 MNT since past two months.
Commodity-wise South Korea Flat Steel Exports in CY18
| Sub Commodity | CY’18 | CY’17 | Change in % | Dec’18 | Nov’18 | M-o-M (Change in %) | Dec’17 | Y-o-Y (Change in %) |
| HRC/Plate | 7.93 | 8.94 | -11 | 0.61 | 0.61 | 0 | 0.82 | -26 |
| Galvanised Steel | 7.04 | 6.84 | 3 | 0.54 | 0.51 | 6 | 0.54 | 0 |
| CRC | 3.84 | 3.72 | 3 | 0.27 | 0.28 | -4 | 0.26 | 4 |
| Electrical Steel | 2.32 | 2.38 | -3 | 0.18 | 0.19 | -5.2 | 0.16 | 13 |
| Others | 0.34 | 0.31 | 10 | 0.02 | 0.02 | 0 | 0.03 | -33 |
| Grand Total | 21.47 | 22.19 | -3 | 1.62 | 1.60 | -1 | 1.81 | -10 |
Quantity in MnT
Source-SteelMint Research
Country-Wise South Korea Flat Steel Exports in CY18- China remained the largest importer of flat steel from South Korea and accounted 16% (3.41 MnT) of share in CY18.
Other major importers in 2018 include Japan which stood at 13%,(3 MnT), India at 11% (2.43 MnT), followed by Mexico at 8% (1.66 MnT) and Thailand at 6% (1.32 MnT).
South Korea flat steel imports CY’18 vs CY’17- As per the customs data release imports of 7208 (HR coils /Plates),7209 (CR coils),7225 (Electrical sheets),7210/7212 (GP/GC) plunged by 24% in CY18 to 7.63 MnT in comparison to 9.98 MnT in CY17.
While the year on year the import was up by 3% to 0.67 MnT in Dec’18 against 0.65 MnT in Dec’17.
Meanwhile on monthly basis the moved down by 4% to 0.67 MnT in Dec’18 against 0.7 MnT in the previous month.
Country-wise South Korea flat steel Imports in CY’18 – China occupied 53% share (4.07 MnT) of the total flat steel imports in CY’18.
Secondly Japan with 41% share stood at (3.16 MnT) in CY18 followed by Taiwan at 3% (0.21 MnT) and Vietnam occupies 1% ( 0.08 MnT) in CY18. Meanwhile India, Sweden and United States also exported to Korea in small volumes in CY18.
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