South Korea’s retail industry is witnessing an increase in inventory as a result of dull demand. Furthermore, cheaper imports from China have impacted domestic prices.
Steel major POSCO’s domestic distribution price for various products for early-June 2022 sales are as follows:
- CR (cold-rolled) sheet at KRW 1.2 million to 1.3 million/tonne (t).
- Hot-dipped galvanised sheet at KRW 1.3 million/t.
- Electro-galvanized steel sheet at KRW 1.3 million/t.
- Pickled steel sheet and glue hard steel sheets at KRW 1.2 million/t.
- Posmac at KRW 1.4 million to 1.5 million/t.
Re-rolling products:
- Cold-rolled sheet at KRW 1.3 million/t.
- Hot-dip galvanised sheet at KRW 1.3 million/t.
- Electro galvanised sheet at KRW 1.3 million to 1.4 million/t.
- Galvalume at KRW 1.4 million/t.
- Building material colour steel sheet (0.5 mm) at KRW 1.7 million/t.
There are no signs of improvement in demand from the downstream sectors such as automobiles, home appliances, construction and machinery.
“Customers have adopted need-based buying, and small and medium-sized manufacturing industries have stopped manufacturing as the construction sector is still recovering,” said a cold-rolled steel distributor.
In H1 2022, POSCO and Hyundai Steel have agreed to hike the supply prices of CR products by KRW 153,000/t to Hyundai and Kia Motors.
Furthermore, at POSCO’s Gwangyang works four CR plants will undergo maintenance from 13 June-12 July, but it is expected that there will be no supply impact amid the drop in domestic demand.
Note: This article has been published in accordance with an article exchange agreement between Steel Daily and SteelMint.
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