South Korea: Hot-rolled stainless steel production rises 9% m-o-m in Dec’25 but offtake falls sharply

• Year-end stock adjustments, tepid demand weigh on sales
• Consumption declines 35% m-o-m amid seasonal slowdown

SteelDaily: South Korea’s hot-rolled stainless steel production recovered m-o-m in December 2025, but total shipments (domestic sales + exports) weakened sharply as both domestic and export demand declined, reflecting year-end inventory adjustments and subdued stainless consumption.

According to data from the Korea Iron and Steel Association (KOSA), hot-rolled stainless steel output reached 139,273 t in December, up 8.9% m-o-m from 127,829 t, reflecting operational adjustments and improved mill capacity utilisation. However, production was down 14.9% y-o-y compared with 163,656 t in December 2024, indicating continued structural softness in the market.

Shipments fall on weak domestic, export demand

Total shipments declined 21.0% m-o-m to 58,062 t. Exports fell 14.9% to 38,422 t, while domestic sales dropped sharply by 30.7% to 19,640 t. As a result, the domestic sales share slipped 4.8 percentage points to 33.8% in December.

The steep fall in local dispatches suggests weak downstream procurement from fabricators and service centres, with buyers limiting fresh bookings.

Imports, consumption shrink m-o-m

Imports declined 34.5% m-o-m to 11,641 t in December. Consequently, nominal consumption — calculated as domestic sales plus imports — fell 32.1% m-o-m to 31,281 t, underscoring the seasonal slowdown and inventory rationalisation across the supply chain.

Production rises marginally y-o-y

On an annual basis, hot-rolled stainless steel production reached 1.77 mnt in 2025, marginally higher y-o-y. Cumulative shipments stood at 858,375 t, with exports accounting for more than 60% of total volumes, while domestic demand continued to trend lower compared with the previous year.

Outlook

Production levels may remain stable in the first quarter; however, a recovery in shipments will depend on an improvement in domestic stainless consumption and export bookings. Inventory normalisation and downstream restocking trends will be key indicators to watch in the first quarter.

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