Korean steel companies face difficulties, Chinese steel will flow into South Korea

Reported by Luke 2020-3-27

Affected by COVID-19 and the economy, South Korean steel companies face the problem of falling exports. At the same time, under the circumstances that the manufacturing and construction industry delayed the resumption of work due to COVID-19, Chinese steel inventories hit a record high, and Chinese steel companies also adopted price reductions to reduce their inventories, which hit Korean steel companies again.

According to statistics from the Korea Iron and Steel Association, South Korean steel exports in February were 2.44 million tons, a year-on-year decrease of 2.4%, which is the second consecutive month of decline in exports since January. South Korea ’s steel exports have been decreasing year by year in the past three years, but South Korea ’s steel imports have increased last year.

According to foreign media Business Korea, due to the recent spread of COVID-19, South Korean steel companies are facing difficulties and Chinese steel stocks have risen to historical highs, putting pressure on South Korean steel manufacturers. In addition, the shrinking demand for cars and ships has made the outlook for the steel industry even more bleak.

According to analysis, as China’s economy slows and steel prices drop, Chinese steel will flow into South Korea in large quantities.