South Korea: Domestic Consumption and Exports of Flat Steel Likely to Increase in CY19

According to POSRI ( POSCO Research Institute) domestic consumption of flat steel and exports from South Korea is likely to grow slightly in upcoming year. As per report domestic and global demand for automobiles and construction materials is anticipated to hit the highest at 27.55 MnT in CY19.

Exports likely to rise in CY19 - Exports are expected to rise by 0.9% Y-o-Y basis to 23.92 MnT in CY19 as compare to 23.69 MnT in CY18. Meanwhile exports moved up by 0.6% in CY18 against 23.55 MnT in CY17 due to surge in galvanized steel sheets exports along with slow demand in domestic market.

Steel Production expected to touch 47.37 MnT in CY19- It is forecasted that production will reach to 47.37 MnT in CY19, higher by 2% against 46.6 MnT in CY18 amid import substitution, new plating facilities and strong sales volumes.Meanwhile the same move down by 1.3% in CY18 against 47.23 MnT in CY17.

Imports are expected to fall in CY19-Imports are expected to decline by 8.6% to 3.60 MnT in CY19 as compare to 3.94 MnT in CY18. However the same fell by 12% in CY18 as compared to 4.48 MnT in CY17 owing to increase in domestic supply and higher import prices.

Domestic demand may increase in CY19 - Demand may increase by 1% to 27.05 MnT in CY19 as compared to 26.84 MnT in CY18. However the same witnessed slight decline in CY18 against 28.16 MnT in CY17.

The outlook of Korean Steel Supply and Demand

Fig in thousand tons
Source- Steel Daily