POSRI ( POSCO research Institute) has reported that in Q2 CY18 South Korea’s steel production and sales are expected to remain subdued amid lackluster demand in domestic market.
As we can observe in the table mentioned below that expected domestic demand and supply outlook in Q3CY18 is at 14,170 thousand tonnes which is lower by 1.3% on quarterly basis against 14,370 thousand tonnes in Q2CY18. However as per estimated figures domestic demand will show further slump in Q4CY18 when compared with previous quarters.
Thus sluggishness of demand in automobiles and construction sector has lead to decline in sales volumes in upcoming quarters.Also domestic shipments for plates and long steel have witnessed decline in Q1CY18.
Steel exports expected to decline on yearly basis in CY18 amid USA export regulations on steel pipe – As per POSRI report, South Korea’s steel exports are expected to remain lower in CY18 than previous year due to imposition of USA export regulations on steel pipes. However the margin is expected to be minimal.
Also if quarterly comparison is made then nation’s steel exports is estimated to be around 8,105 thousand tonnes which is slightly higher by 3% in Q3CY18 as compared to 7,840 thousand tonnes in previous quarter. Although as per estimated figures by POSRI, exports are anticipated to witness decline in CY19.
Steel production showed the marginal increase amid weak demand in domestic market-In coming quarters production is expected to increase,however the increase will remain marginal.On quarterly basis in Q3CY18 steel production in Korea is expected to be around 19,830 thousand tonnes rose slightly by 1% as compared with 19,650 thousand tonnes in previous quarters.Also production of flat steel is anticipated to increase marginally but owing to weak demand the growth in production numbers will continue to remain on lower side.
Imports are expected to record lowest level since CY 04 – Amid sluggish demand in domestic market coupled with expansion of supply in flat steel products may result to decline in nation’s steel imports in CY18.
The outlook of Korean Steel Supply and Demand
| Particulars | 2017 | 2018 | 2019 | ||||||
| Total | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Total | |
| Domestic | 56,402 | 13,145 | 14,370 | 14,170 | 13,855 | 55,540 | 13,990 | 14,555 | 28,455 |
| Export | 31,668 | 7,868 | 7,840 | 8,105 | 7,745 | 31,558 | 7,845 | 7,925 | 15,770 |
| Production | 77,161 | 18,797 | 19,650 | 19,830 | 19,345 | 77,622 | 19,250 | 19,775 | 39,025 |
Fig in thousand tonnes
~Inputs from Steel Daily
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