South Korea’s finish flat steel imports surge, where as finish long steel imports plunged on quarterly basis in CY’19, as per the recent released custom data.
Iron ore Imports
South Korea iron ore imports increased by around 8% on quarterly basis and stood at 18.47 MnT in Q2 CY’19 compared to 17.16 MnT in Q1 CY19. Reasons attributed to rising imports is sharp increase in exports from Australia which stood at 14.07 MnT in Q2 CY’19 moved up by 18% against 11.92 MnT in Q1 CY’19 which is rebounded in Q2 CY’19 after being hit by cyclone in Q1 CY’19.
However, on monthly premises imports down by around 5% to 6.27 MnT in Jun ’19 compared to 6.57 MnT in May’19. On yearly basis, imports recorded drop of around 9% compared to 6.86 MnT in Jun’18.
Imports from Brazil dropped significantly by 33% to 1.69 MnT in Q2 CY’19 due to supply crisis compared to 2.52 MnT in Q1 CY’19 followed by South Africa at 1.63 MnT up sharply by 44% against 1.13 MnT in Q1 CY’19.
Coal
South Korean Coal Imports registered at 32.55 MnT in Q2 CY’19 down by 6.46% against 34.8 MnT in Q1 CY’19.
In line, on yearly basis imports down by 12.75% and stood at 37.31 MnT in Q2 CY’18.
The Korean government has placed a range of measures to reduce the country’s reliance on coal-fired power generation, which has ultimately lowered coal intake during CY19.
South Korean government’s third Basic Energy Plan finalized in June 2019 and further aimed to a shrinking role for coal-fired power in the country’s energy system over the next three decade. Besides, in order to accelerate energy transition away from coal, the import tax on LNG was further lowered by 75%, while the tax on coal was raised by 28%.
The country has witnessed a drop in coal imports on y-o-y basis for the fourth successive month during Jun’19. Apparently, coal volumes in Jun’19 had fell to 10.27 MnT down by 12.44% against 11.73 MnT in Jun’18, and on monthly basis it is move down by 9.6% and registered at 11.36 MnT in May’19.
Major Coal Exporters:
Australia remained the chief coal supplier to South Korea during Q2 CY19 period. Interestingly, the country had posted the only positive growth y-o-y as seen among the major coal exporters.
Australian coal exports increased 12% Y-o-Y to 11.23 MnT in Q2 CY19 against 10.02 MnT recorded in Q2 CY18. However, export volume in Jun’19 fell to the lowest mark for CY19, recorded at 2.94 MnT.
Russia emerged as the second-largest coal supplier followed by Indonesia, during the quarter period.
Ferrous Scrap Import Down in Q2 CY’19
South Korean ferrous scrap imports fell by 10.27% Q-o-Q in Q2 CY’19 and registered at 1.66 MnT against 1.85 MnT in Q1 CY’19. Scrap imports from the leading supplier Japan moved down amid uncertainty in the market while USA imports too witnessed a drop in comparison to the previous quarter on global uncertainty and trade tensions.
On yearly premises imports witnessed a decline of 5% Y-o-Y against 1.59 MnT in Q2 CY’18.
Country-wise – Japan remained the largest scrap supplier to South Korea in Q2 CY’19 as it exported 0.98 MnT ferrous scrap occupying a share of around 59% in total imports, falling by 16.23% Q-o-Q from 1.17 MnT in Q1 CY’19.
USA stood as second largest supplier, witnessing a sharp fall of 34.14% Q-o-Q with 0.27 MnT in Q2 CY’19 followed by other major suppliers Russia (0.22 MnT, up 37% Q-o-Q).
Leading steel mills from South Korea continued to lower bids for Japanese scrap throughout Q2 CY’19 as Japanese domestic prices maintained downtrend.
Semi Finish Imports
South Korea’s, Semi Finish (Billet & Pig Iron) imports down by 20.5% to 0.58 MnT in Q2 CY’19 compared to 0.73 MnT in Q1 CY’19.
In line, monthly premises import registered at 0.2 MnT in Jun’19 down by 4.8% compared to 0.21 MnT in May’19.
Finish Flat Steel Import
South Korea registered its Flat Steel imports at 2.47 MnT in Q2 CY’19 moved up by 10.76% against 2.23 MnT in Q1 CY’19. As per reports, imports continued to rise due to competitive prices even though domestic demand remained slow
On monthly basis country’s Flat steel import declined by 20% to 0.68 MnT in Jun’19 as against 0.85 MnT in May’19.
Finish Flat Stainless Steel Imports
Country’s finish flat stainless steel import moved up by 4.3% to 0.24 MnT in Q2 CY’19 as against 0.23 MnT in Q1 CY’19.
Whereas, on monthly and yearly premises import remain stable with 0.07 MnT in June’19 against previous month and over a year ago i.e May’19 and June’18 respectively.
Finish Long Steel Import
On Quarterly basis Finish Long Steel import by South Korea were down by 6.9% to 0.67 MnT in Q2 CY’19 against 0.72 MnT in Q1 CY’19.
Commodity Wise
Import of Rebar by South Korea Q-o-Q basis is at 0.36 MnT in Q2 CY’19 fell by 12.2% compared to 0.41 MnT in Q1 CY’19, followed by Structure which also fell by 3.7% to 0.26 MnT in Q2 CY’19 against 0.27 MnT in Q1 CY’19 and import of wire rod is 0.06 MnT in Q2 CY’19 which increased by 20% compare to 0.05 MnT in Q1 CY’19.
Country Wise
China stood as the top exporter of finish long steel to South Korea but on Q-o-Q basis declined by 10.25% to 0.35 MnT in Q2 CY’19 against 0.39 MnT in Q1 CY’19 followed by Japan down by 10% to 0.18 MnT in Q2 CY’19 against 0.2 MnT in Q1 CY’19 and Vietnam 0.06 MnT in Q2 CY’19 stable against previous quarter i.e; Q1 CY’19.
Meanwhile, South Korea’s crude steel production registered at 6.37 MnT in May’19 move up by 6.52% against 5.98 MnT in Apr’19.
Ferro Alloy Imports
Country’s Ferro alloy imports registered at 0.23 MnT in Q2 CY’19 up by 9.5% as against 0.21 MnT in Q1 CY’19.
On monthly basis import stood as 0.07 MnT in June’19 increased by 16.67% against 0.06 MnT in May’19, whereas on yearly basis it decline by 22.22% compare to 0.09 MnT in June’18.
Graphite Electrode imports registered at 12,573 MT in Q2 CY’19 move up by 3.29% against 12,172 MT in Q1 CY’19.
In line on monthly basis, imports stood at 4,593 MT in Jun’19 surged by 18.43% against 3,878 MT in May’19.
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