As per recent reports, South Korea based Hyundai steel Dangjin Steelworks may observe some supply disruption amid planned second general strike for five days from 15th to 19th October subsequently after first general strike for 72 hours in beginning of the month.
Thus general strike will hamper demand and supply factors which in turn can increase pressure on plate prices in domestic market. According to an estimation production of around 60,000 MT will be hampered only at Dangjin plate. Since beginning of this month, production has been hampered at both 1& 2 plate mill from the beginning of October.
Meanwhile the company’s union has also warned to schedule third strike if no compromise takes place in the future negotiations.
Company official on heavy plate distribution commented that,”If the supply disruption increase,it can become a strong power for price increase.It is expected to be an important turning point after mid October”.
Hyundai Steel posses an annual steel plate production capacity of 3.5 MnT at Dangjin Integrated steelworks which is equipped with latest equipment such as heat treatment equipment.
South Korea HRC/Plate exports in Jan-Aug-South Korea exported 5.46 MnT of HRC/Plate in first eight month of CY18. Nation majorly exports flat steel to Japan (18% of share), India (16.13%) of share and China at 11% followed by Vietnam, USA,Italy and Indonesia.
~Inputs from Steel Daily
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