South Korea which is fourth largest steel exporter in the world has registered plunge in flat steel export volumes in Apr’18.Nation’s flat steel exports volumes have hit almost 5 years low at 1.49 MnT in Apr’18.
As per latest customs data, South Korea flat steel exports which includes 7208 (HR coils /Plates),7209 (CR coils),7225 (Electrical sheets),7210/7212 (GP/GC) reduced by 20% in Apr’18 as compared to previous month.Nation’s flat steel exports volumes was 4 year and 7 months lower which stood at 1.49 MnT in Apr’18. Prior to this lowest was seen in Sept’13 at 1.36 MnT.
In Apr’18 nations has exported 1.49 MnT in Apr’18 as compared to 1.86 MnT in Mar’18.However on yearly basis the same plunged by 21% in Apr’18 against 1.89 MnT in Apr’17.
During first four months of Jan-Apr’18 Korea flat steel exports stood at 7.05 MnT fell by 7.3% against 7.61 in similar time frame of previous year.
Implementation of quota from USA lead to conflict among Korean Steelmakers-South Korean steelmakers are disputing among themselves over the US export quota following Washington’s decision to exempt them from the 25% additional tariff.
Since United States has not provided details of the quota and the Korean companies have different opinions about quota allocation. which is to be implemented from May 1.
However , the Office of the United States Trade Representative (USTR) has yet to announce its quota according to the HS Code.
Thus uncertainty in Korean market post announcement of USA tariffs has lead to reduction in export volumes.
Sub Commodity wise Flat Steel Exports in Mar’18
| Sub Commodity | Apr’18 | Mar’18 | M-o-M (Change in %) |
Apr’17 | Y-o-Y ( Change in %) |
| HRC/Plate | 0.37 | 0.72 | -48.61 | 0.81 | -54.3 |
| Galvanised Steel | 0.59 | 0.60 | -1.66 | 0.52 | 13.46 |
| CRC | 0.33 | 0.33 | 0 | 0.34 | -2.94 |
| Electrical Steel | 0.17 | 0.19 | -10.52 | 0.20 | -9.5 |
| Others | 0.03 | 0.03 | 0 | 0.02 | 50 |
| Grand Total | 1.49 | 1.86 | 20% | 1.89 | -21% |
Fig in MT
Source-SteelMint Research
South Korea Flats Steel Exports to US fall significantly- China stood as the largest flat steel importer of South Korea and has imported 0.34 MnT of flat steel in Apr’18, up by 21% against 0.28 MnT in Mar’18.
Second largest importer was Japan at 0.34 MnT in Apr’18 up by whopping 55% against 0.22 MnT a month ago.
Third largest importer of flat steel from South Korea was India , procured 0.09 MnT in Apr’18 which was 0.25 MnT in Mar’18.
Other flat steel importers were Mexico at 0.12 Mnt,Thailand at 0.08 MnT followed by United states 0.05 Mnt ,Indonesia at 0.03 MnT and Vietnam at 0.02 MnT in Apr’18.
Flat steel exports to US have come down sharply to 0.05 MnT in Apr’18, against 0.09 MnT in previous month.
Leave a Reply