South Korea's HRC exports, imports show downtrend in Jul'24

Steel Daily: South Korea's domestic hot-rolled wide-width steel strip exports and imports both experienced significant declines in July 2024 compared to the previous year. This downturn continues a trend observed in the second quarter, suggesting a potential slump throughout the third quarter.

Korea's hot-rolled steel (HR) exports in July experienced a decline compared to the same period last year, as per Korea Iron and Steel Association (KISA). The total volume exported was 304,009 tonnes (t), representing a 16.1% y-o-y decrease and a 7.5% m-o-m fall from the previous month.

Despite the overall decline, there were notable regional shifts in export destinations. India emerged as the single-largest market for Korean HR, accounting for 22% of total exports. Sales to India increased by 8.9% y-o-y, reaching 66,933 t.

Italy also witnessed a significant surge in imports from Korea, with a 284% y-o-y increase in HR steel purchases compared to the previous year, amounting to 37,761 t.

Conversely, exports to several key markets experienced declines. Japan, the US, and Vietnam all saw reductions in Korean HR steel imports. Exports to Japan decreased by 29.8% to 53,087 t, while the US saw a 34.2% y-o-y decline to 39,296 t. Vietnam's imports from Korea also dropped by 15.2% to 31,355 t.

Imports of HR steel into India continued to exhibit a sluggish trend in July, reaching 226,577 t, a decline of 16.7% y-o-y compared to the same period last year. While this figure represents a 10.7% increase from the lowest point recorded in June, it remains at a low level overall.

The primary source of imports, China, has witnessed a significant reduction. Typically ranging between 120,000 t and 150,000 t per month, imports from China have now dropped to around 50,000 t.

Both exports and imports have been experiencing a downward trajectory in terms of pricing. Exports have been declining for four consecutive months since March, while imports have seen a similar trend for five consecutive months. The weakening global steel market has further contributed to the softening of prices.

Note: This report has been written in accordance with an article exchange agreement between Steel Daily and BigMint.