9,484.26 TRY BIST 100 BIST 100
37.91 USD USD USD
5.24 CNY CNY CNY
41.79 EUR EUR EUR
0.13 CNY CNY/EUR CNY/EUR
45.20 TRY Interest Interest
69.56 USD Fossil Oil Fossil Oil
31.51 USD Silver Silver
4.76 USD Copper Copper
102.64 USD Iron Ore Iron Ore
356.00 USD Shipbreaking Scrap Shipbreaking Scrap
3,797.04 TRY Gold (gr) Gold (gr)

Import pressure continues in the South Korean steel industry

In the steel sector, South Korea's balance of imports and domestic production is challenged by the influx of low-cost steel products from the likes of China and Japan. In particular, Japan's price reduction due to the low yen effect increased price competition.

Import pressure continues in the South Korean steel industry

According to data from the Korea Iron and Steel Association, steel imports from China and Japan increased significantly last year. However, domestic steel companies are facing serious competition as domestic products are launched at more affordable prices. For example, domestic hot rolled steel sheets are sold at 5% to 10% lower prices than imported products. Recently, the price of domestic hot rolled steel sheets (SS275 based) is around 700,000 won (514 USD) per ton.

The high level of the won-dollar exchange rate causes increasing problems in the steel industry. As the exchange rate rises, import costs such as steel raw materials and fuel increase. This negatively affects the profitability of domestic producers.

The sector aims to overcome the crisis with large-scale facility investments and repairs. The introduction of new technologies and increasing productivity aims to increase the competitiveness of steel. Large companies such as POSCO plan to improve their performance and safety standards by focusing on the renovation of old facilities.

Hyundai Steel, on the other hand, will invest 2 trillion won (1.4 billion USD) in facilities and expand its facilities this year. It also plans to establish a steel service center for electric vehicles in the US. It aims to develop environmentally friendly production facilities by focusing on carbon neutrality.

"The source of steel competitiveness comes from cost," said an official from the steel industry, adding: "To increase profitability, we will implement various measures such as building smart blast furnaces and increasing the efficiency of existing facilities.

Comments

No comment yet.

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In

Most read news

China Shilu Steel Mill in Hainan goes bankrupt

Saturday, April 5, 2025

Russian coal exports fell sharply in March

Wednesday, April 2, 2025

China to impose a 34% tariff on the US!

Friday, April 4, 2025

Diler Demir Çelik aims to reduce its 'Scope 2' emissions by 98% by 2030

Saturday, April 5, 2025

EU DRI imports decline by 55% in January

Saturday, April 5, 2025
Follow List
Expand
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.


There are no news categories you follow
Edit Notification Preferences
E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now