South Korea: Heavy plate sales decline as imports surge in Nov'22

South Korea's heavy plate sales dropped by 11% m-o-m to 534,541 tonnes (t) in November 2022 as compared to 601,548 t a month ago. Sales fell by 32% y-o-y as against 791,551 t in November 2021, as per data released by the Korea Iron and Steel Association. The delayed recovery in heavy plates demand from key consuming industry like construction impacted the sales volumes.

Out of the total sales volume, exports accounted for 118,682 t in November, down 16% from 141,141 t in the previous month and domestic sales fell by 10% m-o-m to 415,859 t in November against 460,407 t last month.

Cumulative sales dropped by 6% y-o-y to 7.70 million tonnes (mnt) in January-November 2022 from 8.17 mnt the same period a year ago. Exports and domestic sales also fell by 6% y-o-y each to 1.73 mnt and 5.97 mnt respectively in the January-November period.

Imports surge m-o-m in November

Heavy plates imports into South Korea registered a sharp rise of 55% m-o-m to 164,324 t in November against 105,853 t a month ago. The volume was up by 11% on a y-o-y basis from 148,212 t in November 2021.

Import volumes surged 59% y-o-y to 1.56 mnt in January-November 2022 as against 984,993 t in the corresponding period last year.

Production declines amid cheaper imported prices

Heavy plates production dropped by 28% to 589,354 t in November as against 814,862 t in the same period last year. This was mainly due to a decline in sales volumes and an increase in imports of heavy plates amid cheaper offers. As a result, shipbuilders reduced their purchase volumes from domestic manufacturers, pushing heavy plate makers to lower their offers.

Production of heavy plates is likely to normalise in the near term after the completion of restoration of thick plate factory at POSCO's Pohang works and the postponement of the strike at Hyundai Steel's Dangjin works.

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