South Korea: Domestic plate production holds steady in June, exports rise

SteelDaily: Production volumes of South Korea's domestic plate manufacturers remained stable at around 700,000 tonnes (t) for the second consecutive month in June. While export volumes grew significantly, their overall impact on sales was limited being a relatively small share compared to domestic demand.

Production performance

The combined production of the three major domestic thick plate producers (POSCO, Hyundai Steel, and Dongkuk Steel) reached 715,000 t in June. This represented a 1.7% m-o-m increase compared to May 2024. However, this represents a 10.6% y-o-y decrease from the same month last year.

Production was impacted due to regular maintenance at POSCO's Pohang Steelworks and Dongkuk Steel's Dangjin Steelworks. However, Hyundai Steel's increased production helped balance out the overall output.

Sales trend

Sales volumes for the month were at 714,000 t, a mere 0.1% m-o-m increase from May 2024, but a 2.9% y-o-y decrease from June 2023.

Domestic demand for plates decreased by 11.1% y-o-y and 2.3% m-o-m to 466,000 t in June, due to seasonal factors, a slowdown in demand, and inventory stockpile. In contrast, exports increased by 21.6% y-o-y and 5.1% m-o-m to 248,000 t, driven by favourable exchange rates and sluggish domestic sales.

The cumulative production volume for the second half of the year was 4.212 million tonnes (mnt), a 4.9% decrease from the same period last year. Sales volumes were at 4.244 mnt, a 2.7% decrease y-o-y, with domestic sales decreasing by 10.7% y-o-y to 2.871 mnt and exports increasing by 19.6% y-o-y to 1.373 mnt.

Outlook

Overall, the domestic plates market saw a steady performance in June, despite a boost in exports. However, the decline in domestic demand and the reliance on exports may be a cause for concern in the long term.

Note: This article has been written in accordance with an article exchange agreement between SteelDaily and BIgMint.