South Korea’s total steel pipes export volumes increased by more than 30.5% at 445,009 tonnes (t) in January-March 2022 compared to the same period last year, according to the Korea Steel Association.
The rise in exports of steel pipes to the United States, led to an increase in overall exports despite the uncertainties such as the resurgence of Covid-19, the impact of Russia’s invasion of Ukraine and the surge in international oil prices.
In fact, among the total steel pipe exports in the first quarter of this year, exports to the United States recorded 276,973 t, marking an increase of 50.5% y-o-y.
In the case of Canada, exports moved up by 182.1% y-o-y to 30,771 t owing to the rise in global oil prices.
Meanwhile, exports of steel pipes in March 2022 were 172,715 t, a 49.5% increase from the previous month and 43.7% from the same month of the previous year.
Imports
Along with exports, imports also increased significantly. Total steel pipe imports in the first quarter were recorded at 138,805 t, a 28.1% y-o-y increase.
Imports from China were at 106,650 t, up 25.5% y-o-y, and from Japan at 18,641 t, higher by 16.7% y-o-y.
The increase in the price of imported steel pipes seems to have resulted in an increase in the inflow of imported steel pipes into the country even before domestic steel pipe demand recovered.
In addition, it is expected that the increase in the inflow of imported steel pipes is likely to continue due to the effect of price hikes for domestic steel pipe products and a decrease in supply. However, the increase in imports is expected to be limited owing to the Chinese export tariffs uncertainties.
Meanwhile, steel pipe imports in March 2022 were recorded at 48,237 t, up 23.2% m-o-m and 20.9% y-o-y.
Outlook
It is still expected that post-April 2022, the volume of exports will increase mainly from USA, but despite high international oil price, the increase in the number of local rigs is limited, and the number of rigs in Canada is also decreasing. The shift in demand to steel pipes is also expected to be considered.
Note: This insight has been published in accordance with an article exchange agreement between SteelMint and SteelDaily.
Leave a Reply