South Korea: Steel pipes exports decrease, imports rise in Feb’22

South Korea’s steel pipes exports fell slightly in Feb’22 compared to the same month in the previous year, while imports recorded a sharp increase in the same month. Total steel pipe exports by domestic companies in February were recorded at 115,567 tonnes (t), down 26.3% m-o-m and 3.8% y-o-y.

As per the Korea Steel Association, reasons for the decline in exports lie in the increase in global logistics costs due to the spread of Covid-19 and lesser number of business and working days in February.

Exports in February were stagnant compared to the same month in the previous year. Meanwhile, total exports in Jan-Feb’22 were 272,314 t, reporting an increase of 23.3% compared to the same period in the previous year on the back of an increase in steel pipes’ exports in Jan’22.

Exports to the US were recorded at 175,572 t, a 59.5% increase from the same period in the previous year, driven by improvements in the number of rigs due to a surge in international oil prices, thereby, leading to a surge in overall exports.

Exports to Mexico, Vietnam and India also increased compared to the same period of the previous year. However, exports to Australia, Indonesia and China declined sharply.

Imports

Meanwhile, imports were recorded at 39,162 t in Feb’22, down 23.8% m-o-m, while imports increased by 12.3% y-o-y.

Although steel pipe imports slowed down due to the delayed recovery in domestic demand, these seem to have surged compared to the same month in the previous year due to the base effect of the sharp decline in imports last year.

Imports break-up country-wise

In addition to exports, imports were at a total of 90,562 t in Jan-Feb’22, a 32.2% increase from the same period in the previous year.

Chinese imports stood at 69,087 t, a 26% increase compared to the same period last year, and Japanese imports were recorded at 11,990 t, a 28% increase from the same period last year, accounting for 89.5% of total imports.

Outlook

As the number of rigs in the US continues to increase owing to the high international oil prices, it is expected that steel pipes’ exports will most likely continue to rise from the previous year due to the increase in exports to the US after March.

Note: This insight has been published in accordance with an article exchange agreement between SteelMint and SteelDaily.