POSRI Forecasts Slight Increase of South Korean Steel Consumption in 2012

South Korea’s apparent steel consumption is forecasted to increase by 1.0% to 57 million tonnes in 2012 from 2011, plus for 3 consecutive years, according to POSCO Research Institute (POSRI). POSRI forecasts domestic construction market would recover while steel shipment would slow down for car and other industries. Steel plate demand is forecasted to decrease by 7% when shipbuilding tonnage decreases for the first time since 1997. POSRI anticipates the supply becomes excess especially for plate when domestic steel output slightly increases while steel export grows at a sluggish pace.

POSRI’s executive director said at an interview with Japan Metal Bulletin the domestic demand would decrease by 1.3% to 30.3 million tonnes for flat products in 2012 from 2011, the first decrease in 3 years, while the demand would increase by 3.3% to 21.1 million tonnes for long products, plus for 3 consecutive years.

The executive director explained the steel export increased by 15% in 2010 from 2009 and by 20% in 2011 from 2010, while the export would increase by over 6% in 2012 from 2011. The steel import is likely to continue downward trend but exceed 20 million tonnes including semi-finished steels. The steel output is expected to continue uptrend to increase by over 3%.