South Korea’s sales of oil refineries and pipelines continued to soar in Jan-Mar’22, registering a 30% increase at 243,137 tonnes (t) compared to the year-ago period. The hike in prices is attributed to the continued hike in international oil prices this year, according to the Korea Steel Association.
Domestic and global sales
Domestic sales decreased by 1.4% year-on-year (y-o-y) to 9,210 t, but exports jumped 31.8% to 234,027 t from the same period last year, thereby increasing the overall sales growth.
Output
As sales surged, production was recorded at 24,640 t, an increase of 23.8% on an annual basis.
Global oil prices are continuing to rise above $100 per barrel, and this is showing a recovery in demand, which has slowed somewhat owing to carbon neutrality and the effect of the export quota system.
Outlook
In the case of steel pipe exports to the United States, it is expected that sales expansion will be limited until the export volume to other regions is expanded, as the annual volume is set due to the effect of the quota.
Note: This insight has been published in accordance with an article exchange agreement between SteelMint and SteelDaily.
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