South Korea steel export statistics in Nov ’20

In the month of Nov ’20, South Korea’s exports of semi-finished and ferro alloys reported a significant growth, where in exports of finished flat and finished long declined in contrast with previous month.

Semi-finished- During the month of Nov ’20, exports were reported at 67,481 t increasing by 64% compared to 41,272 t in Oct ’20. While the same recorded a massive increase in contrast with 17,644 t in Nov ‘19.

Country wise exports- In Nov ’20, nation’s exports to Japan declined by 38% to 19,196 t in comparison with 30,875 t a month ago. Other major exporting nations were not actively participating until Oct ’20, however, they are contributing to export volumes for the Nov ’20 – Taiwan at 20,002 t, Indonesia at 24,208 t and Kenya at 3,962 t.

Finished long- Exports of finished long declined by 28% m-o-m to 143,614 t in Nov ‘20 against 199,660 t in Oct ’20. The same declined by 32% yearly against 212,053 t in Nov ’19.

Country wise exports- In Nov ’20, exports to Japan fell by 45% to 17,960 t as against 32,921 t a month back. Other major export destinations were Malaysia at 17,440 t (down 52%), Canada at 4,635t (down 72%) and Taiwan at 6,877 t (down 16%).

Finished flat- Exports of finished flat stood at 1,891,148 t in Nov ’20 against 1,947,871 t in Oct ’20, declining by 3% on m-o-m basis and 2% y-o-y basis.

Nations export volumes declined due to following factors:-

• Improved demand from automobile sector- As per the country’s Ministry of Trade, Industry and Energy reported that domestic sales in Korea went up 5.8% to 171,228 units  on 14th Dec ’20 in comparison with 160,151 units as on 16th Nov ’20. Also, the sector was able to recover swiftly from the pandemic and there has been a gradual increase in demand since Aug ‘20.
• Increased investment by govt to promote various sectors- In July 2020, the government had announced a plan to invest KRW160 trillion between 2020-2025 on a ‘Korean New Deal’ program focused on development of green-and-renewable energy, big data, and artificial intelligence. This provided avenues for increased steel demand in the country.
• Growth in the construction sector- According to the Korean Statistical Information Service (KOSIS), South Korea’s construction sector registered an annual growth by 3% in Q3 CY ‘20. Also, KOSIS forecasts the industry to grow by an annual average of 3.7% between 2021-2024 on the back of improving investor confidence- increasing the value of orders received for construction, and the government’s focus on green infrastructure.

Country wise exports- In Nov ’20, exports to China fell by 4% to 328,210 t, as against 341,636 t a month back. Other major export destinations were Japan at 218,351 t (up 3%), and United States at 149,144 t (down 15%).

Ferro alloy- During the month of Nov ’20 the exports were reported at 12,716 t increasing by 53% compared to 8,334 t in Oct ’20. While the same increased by 44% y-o-y basis.

Country wise exports- In Nov ’20, exports to Netherlands fell by 57% to 1,196 t, as against 2,778 t in Oct ‘20. Other major export destinations were India at 1,747 t (up 60%), Indonesia at 400 t (down 27%), and United States at 4500 t.