South Korean SBQ plate demand to outpace domestic supply

Posted on 17 August 2007

Source: Steelguru- 16 Aug 2007

It is reported that almost all the South Korean steel makers are projecting or in the process of adding plate capacities, their combined output will still fail to satisfy the surging demand from the shipbuilders.

The Korea Shipbuilders' Association in its latest report said that South Korean SBQ plate consumption will grow at 12% annual pace in next four years and it would consume 7.52 million tonnes shipbuilding plate in 2007, 11.07 million tonnes in 2010 and 11.93 million tonnes in 2011.

According to Steel & Steel data, POSCO, Dongkuk Steel and Hyundai Steel etc will launch heavy steel plate lines from 2009 and take supply of shipbuilding plate to 8.2 million tonnes by 2011 and in 2007 4.1 million tonnes. However, this will fall behind the demand with some 4 million tonnes to be imported in 2009 and 3.73 million tonnes to import in 2011.

The Korea Shipbuilders' Association said global shipbuilding industry is developing sound, sending increasing orders to its shipbuilders, and making Korea the largest importer of this plate. Yet, it noted the plate should be high quality and it's hard to get suitable goods. The association said "In shipbuilding, South Korea and China are competitors. Volatile price resulting from material plate supply shortage is negative to Korean shipbuilders."



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