South Korea: CR products’ imports likely to fall in Q4CY22 despite domestic supply concerns

South Korea’s cold-rolled sheets imports are likely to fall in Q4CY2022, despite supply constraints from POSCO’s Pohang works amid disruptions caused by typhoon Hinnamnor and shutdown of cold-rolling mill at Hyundai Steel’s Dangjin works.

Notably, the production of cold-rolled steel sheets, pickled steel sheets and electro-galvanised steel sheets at POSCO Pohang works had been impacted by floods. Meanwhile, the repair works are under way and it is expected that the steel major will fully resume operations by the begining of next year. Also, Hyundai Steel’s CR mill number 1 and 2 are not operating currently due to guerrilla strike at Dangjin works.

On the other hand, CR sheet and plate manufacturers such as Dongkuk Steel and KG Steel have been operating with full capacity and the inventory held by the customers is also high at present. This, in turn, has reduced the rising burden on supplies of CR products.

“In addition, the recovery of demand from major industries like construction and appliances is slow, while, the import offers to South Korea have fallen due to currency depreciation. Meanwhile, the cold-rolled sheet imports are expected to decline in the upcoming quarter,” said an industry source.

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