South Korean steelmakers fear influx of cheap Chinese Steel

30-Oct-2018

Increase in orders to South Korea’s shipbuilders has the nation’s steelmakers sounding the alarm about a recent influx of cheaper Chinese imports into the country. The boost in demand by shipbuilders, especially for thick steel plates, resulted in South Korea importing 149,488 tonnes of the plates in September, a monthly high for the year. Of that total, 84,236 tons originated from China, more than double what was imported in February. Business Korea reported, citing data from the non profit Korea Iron and Steel Association said that total monthly imports had historically been less than 100,000 tonnes until February.

POSCO, Hyundai Steel, and Dongkuk Steel, three major South Korean steelmakers, produced about 9 million tonnes of steel plates, of which 5.6 million tonnes went to the domestic market. Local shipbuilders received 60 percent of that, or about 3.36 million tonnes, in steel plates.

South Korean steelmakers are feeling the pressure to cut prices in the face of competition from Chinese rivals, who often sell at cheaper prices. But with the rising costs of raw materials, South Korean steelmakers actually had to raise the price of thick plates, from 600,000 Korean won (about USD 529) per tonne last year, to roughly 700,000 Korean won (about USD 617) per tonne this year.

Source: THE EPOCH TIMES

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