POSCO expects strong demand for finished steel in Q2 2019
2019-04-25 16:25:42 [Print]
On April 24, POSCO said demand for steel and iron from South Korea's auto and shipbuilding industries fell sharply in the first quarter but is expected to increase in the second quarter compared with that in the first quarter.
POSCO said South Korea might produce 1.03 million vehicles in the second quarter of this year, up by 7.85% from about 955,000 in the first quarter, citing the data from South Korean Association of Automobile Manufacturers.
"Despite weak domestic demand, government measures to boost consumption will slow the downward trend in auto production in 2019," said the company.
Total new orders of shipbuilding industry are expected to reach 7 million tons in the second quarter, up by 126% from 3.1 million tons in the first quarter, according to POSCO and Clarksons Research.
"New orders fell in the first quarter of 2019 due to higher ship prices, but are expected to start recovering in the second quarter." said POSCO.
However, POSCO said it expected steel and iron demand from South Korea's construction sector to fall in 2019 due to weak demand in the residential sector, while the social overhead capital (SOC) budget to increase. The company predicted that the investment in South Korea's construction sector would fall by 4.5% in the second quarter from the first quarter.
POSCO produced about 9.41 million tons of crude steel from January to March 2019, up by 2% from 9.23 million tons in the same period last year.
The company expects South Korea's apparent consumption of finished steel to increase to 13.6 million tons in the second quarter from 13.2 million tons in the first quarter.
In the second quarter, south Korea's finished steel exports are expected to be 7.7 million tons, unchanged from those in the first quarter; steel output was 19 million tons, higher than 18.1 million tons in the first quarter; steel imports would fall to 2.4 million tons from 2.7 million tons in the first quarter.
Despite the positive outlook for the second quarter, POSCO said it expects crude steel output to fall by 0.5% YOY to 37.5 million tons in 2019 due to weak demand from South Korea's auto and construction industries.
POSCO said South Korea might produce 1.03 million vehicles in the second quarter of this year, up by 7.85% from about 955,000 in the first quarter, citing the data from South Korean Association of Automobile Manufacturers.
"Despite weak domestic demand, government measures to boost consumption will slow the downward trend in auto production in 2019," said the company.
Total new orders of shipbuilding industry are expected to reach 7 million tons in the second quarter, up by 126% from 3.1 million tons in the first quarter, according to POSCO and Clarksons Research.
"New orders fell in the first quarter of 2019 due to higher ship prices, but are expected to start recovering in the second quarter." said POSCO.
However, POSCO said it expected steel and iron demand from South Korea's construction sector to fall in 2019 due to weak demand in the residential sector, while the social overhead capital (SOC) budget to increase. The company predicted that the investment in South Korea's construction sector would fall by 4.5% in the second quarter from the first quarter.
POSCO produced about 9.41 million tons of crude steel from January to March 2019, up by 2% from 9.23 million tons in the same period last year.
The company expects South Korea's apparent consumption of finished steel to increase to 13.6 million tons in the second quarter from 13.2 million tons in the first quarter.
In the second quarter, south Korea's finished steel exports are expected to be 7.7 million tons, unchanged from those in the first quarter; steel output was 19 million tons, higher than 18.1 million tons in the first quarter; steel imports would fall to 2.4 million tons from 2.7 million tons in the first quarter.
Despite the positive outlook for the second quarter, POSCO said it expects crude steel output to fall by 0.5% YOY to 37.5 million tons in 2019 due to weak demand from South Korea's auto and construction industries.
