Go to List

South Korean steelmakers see low sales in CR products

South Korean steelmakers see low sales in CR products...

Finish Flat
By
437 Reads
24 Jan 2022, 18:58 IST
South Korean steelmakers see low sales in CR products

Sales of cold-rolled (CR) steel at the distributor level in South Korea continue to be slow. Steelmakers in this Asian country are experiencing sluggish sales and their margins have shrunk.

Domestic distribution prices

In the third week of January, the domestic distribution prices of CR steel were at around 1.2 million won per tonne (t), but in some regions, these were even below 1.2 million won/t.

POSCO'S hot dipped galvanised steel sheet (GI) products traded in the mid-range of 1.2 million won/t ($1,005/t), while re-rolled products traded in the higher end of this same price range.

Electro-galvanised steel sheets (EGI) were traded in the mid-range of 1.2 million won/t ($1,005/t), while pickled steel sheets (PO) traded at around 1.1 million won/t ($921/t).

Hot-rolled galvanised steel sheets (HGI) traded in the range of 1.1- 1.2 million won/t ($921-1,005/t), full hard steel sheets (FH) traded in the lower end of 1.1 million won/t ($921/t) and POSCO Posmac traded at around 1.4 million won/t (1,172/t).

Sales of CR products

Sales of CR products have been steady in Jan'22 compared to Dec'21 but margins have been squeezed.

"Since the current market prices are too low, no one expects these to drop further than this. Prices of cold rolled products are expected to remain at this level for the time being," said a distributor of CR products.

With the Lunar New Year holidays approaching, the retail market has not seen any improvement in domestic demand. With the advent of discounted products in the market, overall prices have fallen.

In addition, cold-rolled galvanised inventories at POSCO coil centres have been tight, while re-rolling companies' stocks are still high.

"The sales flow of cold-rolled products has improved a lot since the beginning of Jan'22, but these are being sold at the price range suggested by customers, so mills are selling without a margin," said another cold-rolled distributor.

Outlook

As retail prices of cold-rolled products in January are weak, there are expectations in the South Korean market that prices will rebound in February.

Note: This Insight has been published in accordance with an article exchange agreement between SteelMint and SteelDaily.

 

24 Jan 2022, 18:58 IST

 

 

You have 1 complimentary insights remaining! Stay informed with SteelMint
;