South Korea: Heavy plate manufacturers' production, sales up m-o-m, down y-o-y in May'24
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South Korea's leading steel manufacturers POSCO, Hyundai Steel, and Dongkuk Steel collectively produced 703,000 tonnes (t) of heavy plates in May 2024. While this represents a 10.8% y-o-y decrease compared to May 2023, it signifies a 7% m-o-m growth from April 2024. The significant production increase can be attributed to the completion of major repairs at POSCO's Pohang Steel Mill's second plate plant.
Domestic production of heavy plates in May reached 703,000 t, marking the first time in three months that output surpassed the 700,000 t mark. Sales figures also reflected this upward trend, exceeding 700,000 t.
The surge in production was accompanied by a rise in sales. Total heavy plate shipments in May amounted to 713,000 t, a 3.9% y-o-y decline but a 13.5% m-o-m increase compared to April 2024. Notably, this figure represents the second-highest monthly total this year.
Domestic demand for heavy plates reached 477,000 t in May, reflecting a significant 8.4% m-o-m increase from the previous month. This growth is attributed to price adjustments implemented by several manufacturers, rather than seasonal trends.
Export figures also displayed positive momentum, with May shipments reaching 236,000 t, close to the 240,000-t mark. This improvement can be linked to the resolution of ship delay issues from April 2023 and the recent strengthening of the Korean won (KRW) against the US dollar (USD). Additionally, it appears that each manufacturer is actively increasing export volumes.
However, the positive developments have not entirely erased the negative trend observed in the year-to-date figures. Cumulative production of heavy plates from January to May totalled 3.497 mnt, reflecting a 5.8% y-o-y decline compared to the same period in 2023. Sales volume also witnessed a decrease, recording 3.53 mnt, a 2.9% y-o-y drop.
Furthermore, a widening gap exists between domestic demand and exports. From January to May, domestic demand had decreased by 10.6% y-o-y to 2.405 mnt, while exports experienced a 19.2% y-o-y increase to 1.125 mnt.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
