South Korean Imports Market Overview in Jan’18

South Korea is one of the key economies which is quite active in world steel market. Although it is a net steel exporter, the country is majorly dependent upon imports to meet its raw material requirements for steel production. Let us see what has happened in South Korea’s steel and its raw material import market in past one year and in the first month of 2018.

South Korea’s coal import falls in Jan’18 Y-o-Y

Total Imports: South Korea’s coal imports in Jan’18 registered a plunge of 3.7% y-o-y basis as the same stood at 13.2 MnT in Jan’18 against 13.7 MnT in Jan’17. However, the same increased by 5.6% M-o-M basis and was recorded at 12.5 MnT in Dec’17.

For the year 2017 (Jan to Dec’17), country’s coal imports were recorded at 150.5 MnT, an increase of 6.3% against the previous year of 2016. South Korean coal imports have increased in 2017 supported by outage in Nuclear power especially during winters, forcing power utilities to burn more coal.

Sub-commodity-wise import: Imports of all the major coal grades had registered noticeable growth during the month. Non-coking coal imports had increased 3% M-o-M to 9.5 MnT in Jan’18. While, coking coal imports were recorded 24% higher on the month, at 2.18 MnT. Anthracite and Pet coke imports had also registered a similar growth of 8% and 33% respectively; Met coke imports had remained unchanged during the month.

Country-wise import: Australia remained the highest coal exporter in Jan’18. Coal exports from the country had increased 15% M-o-M to 4.33 MnT during the month, which was also 20% higher on the year compared with 3.6 MnT in Jan’17. Coal exports to Korea from its other two major suppliers-Indonesia and Russia had fallen during the month.

South Korea’s Iron ore import witness marginal surge in Jan’18

Total import: South Korea witnessed a slight increase in iron ore imports in Jan’18 at 6.22 MnT against 6.13 MnT in Jan’17. In M-o-M basis, the country recorded increase of 1% as the same was at 6.15 MnT in Dec’17. In CY17, South Korea imported 72.43 MnT iron ore, almost stable against 71.6 MnT in CY16.

Sub-commodity-wise import: Agglomerated iron ore (pellets and concentrate) imports were up by 33% M-o-M to 0.4 MnT in Jan’18 against 0.3 MnT in Dec’17. The Y-o-Y change depicted a rise of 60% as compared to 0.25 MnT in Jan’17.
A non-agglomerated iron ore (lumps & fines) imports remained almost stable at 5.83 MnT in Jan’18 as against 5.85 MnT in Dec’17. The Y-o-Y imports in Jan’18 recorded marginal decline as against 5.88 MnT in Jan’17.

Country-wise import: Australia continues to be the largest exporter of iron ore to South Korea in Jan’18 at 3.74 MnT, down 13% M-o-M (contributing 60% of total import share), followed by Brazil at 1.5 MnT( up 40% M-o-M), and South Africa at 0.45 MnT (up 61%).

South Korea’s steel import plummets significantly in Jan’18 Y-o-Y

Total Flat steel imports: In case of flat steel, South Korea’s imports for Jan’18 stood at 0.66 MnT, a drastic fall of 23.3% y-o-y basis against 0.86 MnT in Jan’17. However, if M-o-M comparison is done, its flat steel imports were recorded at the similar level of 0.65 MnT in Dec’17.

For FY17 country’s flat steel imports were recorded at 9.98 MnT, against 11.85 MnT in 2016. The country is a net exporter of flat steel.

Sub-commodity-wise imports: If we look at country’s flat steel products, the percentage contribution of HRC/Plate in South Korea’s total flat steel imports usually stands around at around 60%. In Jan’18, HRC/Plates imports of the country were recorded at 0.36 MnT, a decline of 10% M-o-M basis in Dec’17. While in y-o-y basis, the same fell by 26.5% against 0.49 MnT in Jan’17.

The country’s galvanised steel import in Jan’18 stood at 0.14 MnT (down by 22% y-o-y), electrical steel import stood at 0.11 MnT (down by 26.6% y-o-y), whereas CRC import stood at 0.04 MnT (up by 33% y-o-y).

Country-wise import: South Korea imports flat steel mainly from China, Japan and Taiwan. Fo Jan’18, the same stood at 0.34 MnT followed by Japan at 0.27 MnT and Taiwan at 0.03 MnT.

South Korea’s ferrous scrap imports increases in Jan’18 y-o-y

Imports: South Korea is the world’s 2nd largest importer of ferrous scrap after Turkey, imported 0.56 MnT ferrous scrap in Jan’18 as against 0.47 MnT in Jan’17, a surge of 19% y-o-y basis. In M-o-M basis, the same registered a fall of 5% against Dec’17.

South Korea imported 5.90 MnT ferrous scrap over the span of CY17, up by 5% Y-o-Y as against 5.64 MnT imports in 2016. Rising scrap demand by major steelmakers in South Korea with rising crude steel production resulted in rising in scrap imports in 2017.

According to the data released by World Steel Association, crude steel production in South Korea stood at 71.08 MnT in 2017 compared to 68.57 MnT during CY16.

Country-wise ferrous scrap import: Japan remained largest ferrous scrap exporter to South Korea again in Jan’18. Japan supplied 0.39 MnT (-13% M-o-M) ferrous scrap occupying highest 61% share in total imports to South Korea. In Jan’18, United States emerged as a second highest exporter and supplied 0.09 MnT (80% M-o-M) ferrous scrap to South Korea. Followed by Russia (0.06 MnT, -50% M-o-M) and United Kingdom (0.04 MnT, +300% M-o-M) respectively.

South Korea’s Import Numbers

Quantity in MnT
Source: SteelMint