SOUTH KOREA STEEL MARKET ROUNDUP FROM MEPS
Hot rolled coil selling figures, in South Korea, remained
steady month-on-month, in May, according to MEPS. Demand is subdued, amidst an
inflow of low-priced imports from China and a slowing economic recovery.
Domestic oversupply, low-cost Chinese imports and poor demand from an ailing
construction industry are depressing commodity plate transaction values.
Moreover, the shipbuilding market is sluggish. We have noted another downward
Orders in the cold rolled coil general market are depressed and vehicle sales
are far from robust. This weak domestic consumption, combined with strong
rivalry from Chinese suppliers, has forced local steelmakers to concede further
The South Korean vehicle manufacturers continue to push for price reductions
because of slow sales at home and abroad. Building demand for coated material
shows no substantial revival. Steelmakers have been forced to offer discounts.
Prices have now undergone negative movements for five months in a row.
Rebar selling figures have slipped again. The negative movement has been caused
by poor demand from a depressed building sector and highly attractive Chinese
offers. Local producers are pinning their hopes on forecasts of better sales in
the coming months.
Steel Review - May Issue
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