South Korea: HR steel plate production increases y-o-y in H1 2024, sales volume declines

Steel Daily: Despite a slight increase y-o-y in South Korea's hot-rolled (HR) steel plate production in the first half of 2024 (January-June), sales have declined, according to the Korea Iron and Steel Association. This trend can be attributed to factors such as increased self-consumption, the domestic economic recession, and global protectionism.

Production of HR steel plates in the first half of 2024 reached 17.456 million tonnes (mnt), up 2.1% y-o-y. However, sales volume during the same period decreased by 3.8% y-o-y to 7.465 mnt. While the demand for downstream products such as automotive components supported the consumption of domestically produced HR steel, external sales declined due to the domestic economic downturn.

Domestic sales in the first half of the year decreased by 0.4% to 4.33 mnt, while exports fell by 8.7% to 2.797 mnt. The decline in exports can be attributed to the influx of low-priced imported goods and increased global protectionism.

In June, HR steel plate production rose to 3.061 mnt, up 1.4% y-o-y and 9.2% m-o-m. The increase in production was driven by the recent completion of maintenance projects, including the four-month refurbishment of the No. 4 blast furnace (started in February) and the rationalisation of the No. 2 HR steel mill (initiated in April), which were both finished last month.

Outlook:

The domestic HR steel plate market saw mixed results in H1 2024, with production rising slightly but sales falling due to economic and global market factors. The industry must address these challenges to ensure future growth and competitiveness.

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