South Korean Steel Consumption Increases by 3.8% to 54MT in 2011

South Korean steel consumption volume is forecasted to increase by 3.8% to 53.915 million tonnes in 2011 from 2010, according to Korea Iron and Steel Association. The consumption is expected to increase for 2 consecutive years. The association forecasts the demand maintains low level for building construction while increases for manufacturing industry. Compared with 2008, the consumption volume will be lower by 8%.

Steel output is forecasted to increase by 5.8% to 69.12 million tonnes in 2011 from 2010. The output would hit the record high for 2 consecutive years. Steel export is expected to increase while steel import would decrease due to alternate from imported products to domestic products. The export is estimated to become higher than the import by 3.8 million tonnes. This would be the first export surplus against the import in 10 years when South Korean steel makers are aggressively expanding production capacities.

Crude steel output is forecasted to increase by 11.0% to 64.31 million tonnes in 2011 from 2010, which would renew the record high for 2 consecutive years. Hyundai Steel’s second blast furnace started operation in November. POSCO is also expanding its production capacity. Production would increase for both converter steel and electric furnace steel for 2 years in a row.

Domestic steel consumption is estimated to increase by 14.4% in 2010 from 2009. Domestic steel demand was steady except for building constructions. Total output of steel products is estimated to increase by 14.8% in 2010 from 2009 thanks to expanded production capacity of steel makers. Steel export would increase by 20.3% and the import would increase by 21.5%.

Hot rolled coil export except for stainless steel is estimated to become less than the import by 2.35 million tonnes in 2010 while the export is forecasted to become surplus against the import by 100,000 tonnes in 2011. Domestic steel demand is forecasted to increase by 5.5% to 33.41 million tonnes in 2011 from 2010 while steel output is forecasted to increase by 14.4% to 33.51 million tonnes. Steel import is forecasted to decrease by 29.7% to 4.95 million tonnes in 2011 from 2010 while the import is forecasted to increase by 7.7% to 5.05 million tonnes.

Plate import is forecasted to become excess against the export by 930,000 tonnes in 2011. The import excess is estimated at 1.88 million tonnes in 2010, narrowing from 3.09 million tonnes in 2009. Domestic demand is forecasted to increase by 5.0% to 11.5 million tonnes in 2011 from 2010. The output is forecasted to increase by 16.6% to 10.57 million tonnes. Steel plate import is forecasted to decrease by 17.5% to 3.3 million tonnes in 2011 from 2010 while the import is forecasted to increase by 11.8% to 2.37 million tonnes.