South Korea steel imports in April declined obviously

Due to weak demand and inventories, South Korea steel imports in April from a year earlier obvious atrophy. South Korea’s iron and steel association, according to statistics released in April 2015, South Korea imported steel 1.84 million tons, compared with the same period last year dropped by 8.5%. The association said, before December 2014, the south Korean steel imports has 14 consecutive months of growth, until this year, steel imports is slowing. Especially cheap Chinese steel products into the domestic market, excess supply caused hurt south Korean steelmakers.

According to the analysis, in April, the south Korean steel imports decline is mainly due to steel imports from China and Japan to reduce and cause. According to statistics, in April, the south Korean imports from China and Japan respectively 1.11 million tons and 619000 tons of steel, year-on-year decline 5.1% and 8% respectively. During January ~ April this year, the south Korean steel imports totaled 7.4 million tons, down 3.8% year-on-year. Among them, the steel imports from China and Japan fell by 1.4% and 1.4% respectively. South Korea steel association officials said, “probably after steel imports fell last month, the south Korean steel market demand fell sharply, sharply reduce inventory, low prices has been the clouds do not come loose. However, is too early to say this is the beginning of the decline.”

The author found that, after further observation, understand the hot rolled coil plate of South Korea’s domestic market demand is weak, on the one hand, because of the domestic economic recovery is slow, on the other hand, due to the impact of the cheap steel imports into China. Recently a month or two, the south Korean domestic steelmakers have agreed to at the early stage of the transaction settlement on steel price adjustment for further offers.

In the downstream user demand side, the south Korean shipyard little change demand for steel is expected in the future, will be roughly equal 2015 years. But the construction is weak demand for steel, sales situation is not very ideal, dealers construction steel inventories. For some business can be small, the domestic competition is fierce between dealers. At the same time, tempting imported steel also appear in their quotation. Commodity price is unstable, is expected in the near future will be further lowered.

Steel for cold rolled products, because the Korean market consumption would not have been flourishing, with strong, fierce competition from Chinese suppliers, forcing its domestic cold-rolled coil plate producers have to make concessions, to further reduce the price of steel. At present, the south Korean automakers are pushing for automotive sheet slashed prices, because their sales situation is not stable, far from being strong. In addition, other industries on the south Korean market user demand for cold rolled coil plate is not active, more depressed.

In march, Korean auto output year-on-year fall again. Study found that the Korean auto export competition and extrusion by the Japanese carmaker nissan has competitive advantage due to the yen, which makes south Korean car manufacturers at a competitive disadvantage. Now, the south Korean construction there have been no substantial demand for coating material recovery. However, there are forecasts the situation will be improved in the late this year. So far, the south Korean steel makers have been forced to for the fourth straight month in offer additional incentives to on sale.

For the profile products, foreign h-beam supplier market share in South Korea has been more and more big. South Korean steelmakers are urging the government to anti-dumping investigations into imports from China. The unhealthy feelings of the domestic construction industry, combined with lots of cheap materials to overseas domestic input, the combination of these factors have led to the south Korean steel market prices decline trend.