South Korea: Oil well, pipeline production up marginally m-o-m in April

South Korea's oil wells and pipeline production inched up by 1% to 89,651 tonnes (t) in April 2022 compared with 88,547 t in the previous month. The same rose 35% y-o-y against 66,526 t in April 2021.

During January-April 2022, production volumes were recorded at 330,291 t, up 27% from 260,958 t seen in the same period last year.

Sales down 13% m-o-m in April

Sales of oil wells and pipeline registered a decline of 13% to 81,670 t in April 2022, compared with 94,290 t a month ago. However, sales increased 15% y-o-y against 70,801 t in April 2021.

Out of the total sales, exports accounted for 80,265 t in April 2022, down 10% m-o-m, while the same was went up 17% compared with 68,882 t in April 2021.

Domestic sales plunged 73% to 1,405 t in April 2022, from 5,265 t in the previous month. Similarly, the same declined by 27% y-o-y from 1,919 t in April 2021.

In January-April 2022, cumulative sales aggregated to 324,807 t versus 257,774 t in the same period a year ago. Exports were recorded at 314,292 t (up 28% y-o-y), while domestic sales at 10,515 t (down 7% y-o-y) during the first four months of CY'22.

Industry insiders are of the opinion that "The trend of the surge in exports appears to have moderated somewhat due to the effect of the export quota to the US, the rise in international oil prices is expected to continue for the time being, so Korean manufacturers plan to focus on expanding orders to various regions".

It is expected that the demand for oil wells and pipelines will continue to rise, owing to increasing oil prices in the global market.

In addition to this, the shift in demand for piping materials,associated with new and renewable energy, particularly LNG, will lend support to a carbon-free society.

Note: This article has been published in accordance with an article exchange agreement between Steeldaily and SteelMint.