- Domestic sales surge by 17% y-o-y amid lower imports
- Exports fall 24% y-o-y amid expanding global protectionism
POSCO and Hyundai Steel’s combined hot-rolled coil (HRC) production for external sales exceeded 1 million tonnes (mnt) for the third consecutive month in July, maintaining a stable trend amid strong domestic demand. Domestic sales increased significantly from a year earlier, supported by the impact of anti-dumping (AD) measures, while exports continued to decline, keeping total sales broadly similar to last year.
According to data compiled by SteelDaily on the HRC production and sales performance of the two blast furnace producers, their combined HRC production for external sales stood at 1.005 mnt in July, down 1.0% y-o-y and 2.4% m-o-m. However, production remained above 1 mnt for the third consecutive month, following 1.015 mnt in May and 1.03 mnt in June.
The two producers’ combined HRC sales for external markets stood at 985,000 tonnes (t) in July, down 1.5% y-o-y and 4.8% m-o-m.
Domestic sales remain strong
Domestic HRC sales exceeded 600,000 t for the fifth consecutive month, reaching 645,000 t in July, up 17.3% y-o-y. Although sales declined 3.0% from June, they remained well above the 600,000-t mark.
The increase was driven by the continued impact of AD measures on HRC imports from China and Japan. In particular, the sharp decline in Chinese imports appears to have resulted in some substitution by domestically produced HRC.
As a result, domestic sales accounted for 65.5% of the two producers’ total HRC sales in July, significantly higher than 55.0% in the same month last year.
The higher domestic share indicates that POSCO and Hyundai Steel have increasingly focused their sales on the Korean market as import competition has weakened. This has helped support domestic shipments despite a decline in overall HRC sales.
Exports continue to decline
In contrast, combined HRC exports fell to 340,000 t in July, down 24.4% y-o-y and 8.1% m-o-m.
The decline reflects the producers’ continued focus on domestic sales, while export conditions have also weakened amid the expansion of global protectionism and import restrictions. The European Union’s tighter steel safeguard measures, along with increased import regulations in major markets, have further constrained export opportunities for Korean producers.
The widening gap between domestic and export sales highlights the growing importance of the Korean market for POSCO and Hyundai Steel. However, continued weakness in exports could limit total sales growth if domestic demand does not remain strong enough to absorb available production.
Jan-Jul’26 production and sales
During January-July, the two producers’ combined HRC production for external sales stood at 6.985 mnt, down 1.3% y-o-y. Cumulative sales reached 7.045 mnt, marginally lower by 0.3% from the same period last year.
The divergence between domestic and export sales was also visible during the first seven months of the year. Domestic sales increased 2.2% y-o-y to 4.38 mnt, while exports declined 4.1% to 2.665 mnt.
The data show that domestic demand, supported by AD measures, has so far offset much of the weakness in exports. However, with trade restrictions continuing to expand across major markets, the domestic market is likely to remain increasingly important for Korean HRC producers.
Note: This article has been published as part of a content exchange agreement between SteelDaily and BigMint.
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