South Korea's steel demand may hit 11-year low in 2020
2020-12-18 15:21:39 [Print]
The Korea Iron & Steel Association said on Thursday that due to the impact of the COVID-19 epidemic, it was expected that domestic steel demand in South Korea would drop to its lowest level in 11 years in 2020.
The Korea Iron & Steel Association stated that this year's steel demand in South Korea was expected to be 48 million tons, a decrease of about 8% from 53.2 million tons in the same period last year, due to the impact of the COVID-19 epidemic in manufacturing, construction and other key industries.
Since the outbreak of the global financial crisis, South Korea's steel demand plummeted from 58.6 million tons in 2008 to 45.4 million tons in 2009. Since it started to grow again in 2010, South Korea's steel demand kept hovering above the 50 million tons in the past ten years.
Industry sources said that due to weak demand from the shipbuilding industry, South Korea's steel demand might remain at 50 million tons next year.
The association also predicts that due to the impact of the COVID-19, South Korea's exports of steel products this year would reach 29 million tons, falling to below 30 million tons for the first time in seven years.
In the first ten months of this year, South Korea's steel exports contracted by 16% compared with the same period last year. The Association of Southeast Asian Nations (ASEAN) was South Korea's largest steel export market with a market share of 22%, followed by China and Japan with the market shares of 19% and 11% respectively. It is particularly worth mentioning that South Korea's exports to China increased by 43% YOY to 4.61 million tons, boosting the overseas exports of South Korea steel products.
However, the association said that due to the decline of the demand from neighboring Japan, South Korea's steel exports to Japan in 2020 may drop by about 20% compared with the same period last year.
The Korea Iron & Steel Association stated that this year's steel demand in South Korea was expected to be 48 million tons, a decrease of about 8% from 53.2 million tons in the same period last year, due to the impact of the COVID-19 epidemic in manufacturing, construction and other key industries.
Since the outbreak of the global financial crisis, South Korea's steel demand plummeted from 58.6 million tons in 2008 to 45.4 million tons in 2009. Since it started to grow again in 2010, South Korea's steel demand kept hovering above the 50 million tons in the past ten years.
Industry sources said that due to weak demand from the shipbuilding industry, South Korea's steel demand might remain at 50 million tons next year.
The association also predicts that due to the impact of the COVID-19, South Korea's exports of steel products this year would reach 29 million tons, falling to below 30 million tons for the first time in seven years.
In the first ten months of this year, South Korea's steel exports contracted by 16% compared with the same period last year. The Association of Southeast Asian Nations (ASEAN) was South Korea's largest steel export market with a market share of 22%, followed by China and Japan with the market shares of 19% and 11% respectively. It is particularly worth mentioning that South Korea's exports to China increased by 43% YOY to 4.61 million tons, boosting the overseas exports of South Korea steel products.
However, the association said that due to the decline of the demand from neighboring Japan, South Korea's steel exports to Japan in 2020 may drop by about 20% compared with the same period last year.
