South Korea’s total steel pipe exports stood at 445,009 tonnes (t) during Jan-Mar’22, an increase of 30.5% compared with the same period of last year. The hike in exports was largely due to the increase in exports of steel pipes to the USA.
In addition, it is expected that the quota for exporting steel pipes to the USA, which is tied to the annual level of 1 million tonne (mnt), may become insufficient this year, according to the Korea Steel Association.
Country-wise pipe exports
Steel pipe exports to the USA stood at 276,973 t in Jan-Mar’22, up 50.5% compared to the same period of the previous year, leading to an overall increase in pipe exports. The USA accounted for 62.2% of total pipe exports.
Exports to Canada also surged 182.1%, but in terms of volume it was only 30,000 t.
Although high probability is guaranteed in terms of price, suppliers are continuing their efforts to expand exports bounded by a quota of less than 1 mnt per year and less than 300,000 t per quarter.
In the case of Europe and Japan, an agreement was reached as regards increasing the quota based on the trade negotiations that continued last year and earlier this year.
Outlook
International oil prices are above $110 per barrel, and it is highly likely that the demand for steel pipe in the USA will continue to increase due to the rise in the number of rigs and the nurturing of new and renewable energy-related industries.
It is predicted that along with the expansion of quotas through negotiations on steel exports to the USA, it is likely that most companies that received quotas this year will fill their quotas similar to last year.
Note: This insight has been published in accordance with an article exchange agreement between SteelMint and SteelDaily.
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