SteelDaily: Domestic plate makers in South Korea continued to face challenges in August 2024, as production and sales volumes remained stagnant for the fourth consecutive month. While exports showed a promising increase, a severe slump in domestic demand cast a shadow over the industry’s overall performance.
According to a recent survey, the three leading domestic thick plate manufacturers, POSCO, Hyundai Steel, and Dongkuk Steel, recorded combined sales of 700,000 tonnes (t) in August. This figure represented a decline of 3% y-o-y compared to the same period last year and 2.9% m-o-m compared to the previous month, respectively.
Domestic sales, in particular, witnessed a significant drop, plummeting to 437,000 t in August. This marked the lowest sales volume since March of this year, raising concerns about a potential decline in the monthly average sales to below 700,000 t.
In contrast, exports exhibited a positive trend, reaching 263,000 t in August. This represented a substantial increase of 27.7% y-o-y compared to August 2023 and 10% m-o-m compared to July 2024. However, due to the relatively small proportion of domestic exports, their impact on overall sales was limited.
An industry insider expressed concerns about the growing reliance on exports as a means to offset the sluggish domestic market. While exports offer a glimmer of hope, an increase in low-priced exports could lead to a decline in profitability.
The production of thick plates also experienced a downturn, with the three domestic companies producing a total of 721,000 t in August. This represented a 7.2% m-o-m decrease compared to the previous month.
Cumulatively, from January to August 2024, thick plate production totalled 5.71 million tonnes (mnt), down 3.9% y-o-y. Sales volume during the same period stood at 5.665 mnt, a 2.7% y-o-y decline compared to the previous year.
The widening gap between domestic demand and exports further highlighted the challenges faced by the thick plate industry. As of August, domestic demand decreased by 10.8% y-o-y to 3.79 mnt, while exports surged by 19.4% y-o-y to 1.875 mnt.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
Leave a Reply