Posted on 19 Oct 2022
South Korean shipbuilders imported 1,292,220 tons of thick plates for the first three quarters of this year, up more than 90 percent year on year. Imports from Japan increased 82 percent to more than 790,000 tons and those from China jumped 120 percent to approximately 480,000 tons.
“The current thick plate demand is sluggish in Japan and China alike, and they are increasing supply to other Asian markets at discount prices,” the Korea Iron & Steel Organization explained, adding, “With the imports increasing and the domestic thick plate output constant, domestic steelmakers’ bargaining power may be adversely affected.”
From January to August this year, the domestic thick plate output was 5,975,110 tons, slightly larger than 5,849,716 tons of a year ago. Domestic demand is unlikely to substantially increase for the time being, which means the prices of thick plates supplied to shipbuilders are likely to keep falling.
The current price of SS375-type products from abroad is approximately 1.09 million won per ton, whereas that of the same products from domestic suppliers is about 1.2 million won.
Source:Business Korea
