South Korea’s hot-rolled product (HRP) sales stood at 3.61 mnt in the first quarter of the current calendar year (Jan-Mar’22), down sizeably by 10% against 4.02 mnt in the same period of last year.
Domestic sales accounted for 2.33 mnt of total sales, and registered a drop of 6% against 2.47 mnt in the year-ago period. Exports too, dropped significantly by 17% y-o-y to 1.27 mnt in Q1CY22 period.
In March 2022, HRP sales rose 18% to 1.26 mnt in contrast 1.07 mnt a month ago. However, the same dropped by 4% against 1.31 mnt in March 2021.
Hot-rolled production down 2% on-year in Q1CY22
Korean mills produced HR products lower by 2% to 8.79 mnt in Q1 in comparison with 8.98 mnt in the same period of last year.
In March 2022, production volumes jumped by 14% to 2.98 mnt versus 2.61 mnt in Feb’22. Also, on an annualised basis, the same rose by 3% against 2.88 mnt in March 2021.
The decline in production and sales is due to Korea’s leading domestic steel producer – POSCO, Gwangyang works no. 4 blast furnace and subsequent repairs of hot-rolling facilities were being held during February. Moreover, sales volumes were impacted due to slow recovery in demand admist outbreak of Covid and Russia’s invasion of Ukraine.
Market participants expect imports to rise due to reduced domestic production and supply, along with weakening prices.
Note: This article has been published in accordance with an article exchange agreement between SteelDaily and SteelMint.
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