South Korea’s domestic cold-rolled steel (CRC) industry experienced mixed results in January 2024 compared to the same month last year. Export volumes dipped 10% y-o-y, while imports rose sharply by 118.4% y-o-y, according to the latest data from the Korea Iron and Steel Association.
China dominated both sides of the trade, accounting for 99% of CRC imports and a significant portion of exports.
Exports decline in key markets
Overall, CRC exports fell by 9.9% y-o-y to 200,367 tonnes (t) in January 2024 compared to 222,315 t in January 2023. Decreases were seen in key markets y-o-y like Mainland China (2.6%), Thailand (3.7%), India (28.1%), Turkey (57.6%), and Indonesia (33.2%). However, some regions showed positive growth, including Mexico (10.5%), Japan (5.4%), Malaysia (13.7%), and Taiwan (42%).
Imports soar, thanks to China
Cold-rolled steel sheet imports witnessed a dramatic increase of 118.4% y-o-y to 18,226 t, driven almost entirely by China. Imports from China accounted for a staggering 99% of the total i.e. 18,078 t, highlighting the country’s dominant position in the market.
Price movements
The average import price of cold-rolled steel sheets saw a slight decline compared to the previous month. However, the average export price rose by $14 m-o-m, indicating a potential improvement in export profitability.
Outlook
The January performance of the domestic cold-rolled steel industry was a mixed bag. While exports declined, imports surged, driven by China. This trend suggests potential challenges for domestic producers competing with cheaper imports.
Note: This article has been written in accordance with an article exchange agreement between SteelDaily and BigMint.