KOREA STEEL MARKET ROUNDUP FROM MEPS INTERNATIONAL
According to MEPS, import volumes of hot
rolled coil, in South Korea, are soaring at the same time as domestic output
escalates as Posco’s new hot strip mill comes on stream. This, combined with
sluggish demand, is creating negative price pressure. However, after conceding a
large discount in September, local producers have managed to maintain selling
In September, domestic shipbuilders fell behind their Japanese rivals in winning
new orders for the third time this year, disadvantaged by the weakening yen.
Local selling values for commodity plate have come under further pressure, down
by 2.5 percent since our last report. There is severe internal competition,
together with attractive import offers.
Although sales, of cold rolled coil, to local distributors are poor, demand from
the automakers has picked up as their output revives. However, there is strong
competition from Chinese cold rolled coil imports, which continue to swell in
volume. During recent negotiations, customers have won another decrease.
Domestic car sales are improving, where auto output rose again in September,
year-on-year. Export business is also healthy. However, there has been no
substantial revival in construction demand for coated steel and the local
electronics industry remains dull. Steelmakers have been forced to accept lower
prices in the general market.
September’s rise in the wire rod market proved to be short lived. Selling values
have now reverted to their recent downward tendency, in a lethargic trading
Hyundai has failed in its efforts to lift its structural section selling values
by the proposed KRW30,000 per tonne, but customers have accepted a portion of
the rise. There is still a threat from Chinese exporters, despite the
instigation of an anti-dumping investigation.
Declining scrap costs have encouraged Hyundai Steel, to cut rebar list prices by
KRW5000 per tonne for fourth quarter contracts. In the marketplace, last month’s
small improvement lasted a short time. Demand remains slow and selling figures
have lost 3.3 percent.
MEPS International Steel
Review - October Issue
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