Posted on 09 Sep 2026
Market rumors suggest that a South Korean galvanized coated steel mill has recently faced a worsening cash flow crisis and may even have already collapsed. Given the company's close business ties with numerous local distributors and pre-painted coated steel mills, there are concerns that financial risks could spread throughout the upstream and downstream supply chain.
In recent years, a deteriorating business environment and fierce competition have put pressure on sales prices and profitability, increasing the company's operational burden. Furthermore, in an effort to expand sales, the company invested in a new plant and additional working capital, further exacerbating its financial strain.
Regarding steel traders, relevant Taiwanese companies are actively exploring opportunities to source steel from Taiwan to meet urgent needs. However, considering price and geographical proximity, South Korean players might instead turn to nearby Chinese suppliers.
Source:Yieh
