South Korea: Heavy plates market slumps in April; exports, imports decline
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South Korea's heavy plate trade experienced a significant downturn in April 2024 compared to both the previous year and the previous month. According to the Korea Steel Association, exports fell by 25.9% y-o-y and 26.6% m-o-m to 91,914 tonnes (t). Meanwhile, imports decreased by 13.1% y-o-y and 13.3% m-o-m to 175,147 t.
The slump wasn't limited to South Korea, with major exporters like China and the United States witnessing even steeper declines in their heavy plate exports this year. When compared to the previous year, China's heavy plates export decreased by two times and the United States' decreased by three times.
The data also revealed a shift in import sources. Imports from China, totaling 102,136 t, declined by 21.8% m-o-m from March. Conversely, imports from Japan rose by 5.2% m-o-m to 72,129 t. This trend aligns with currency fluctuations, as the strong Korean won has inflated the cost of Chinese imports, while the weak Japanese yen has kept Japanese heavy plate prices relatively stable.
Price trends showed a slight upward movement. The average unit price for Chinese heavy plates in April increased by $5/t m-o-m to $661/t, while Japanese plates rose by $13/t m-o-m to $758/t compared to March.
From January-April 2024, heavy plate exports totalled 493,497 t, a decrease of 2.7% compared to the same period in 2023. Imports fared worse, falling by 12.8% y-o-y to 709,506 t.
The Korean heavy plate market is facing challenges in 2024. Declining global demand and a strong local currency created a complex scenario for both exporters and importers. With exports and imports on a downward trajectory, it will be interesting to see how the industry navigates the current economic climate in the coming months.
Note: This article has been written in accordance with the content exchange agreement between SteelDaily and BigMint.
