Worldwide steel industry in favorable position…Depressing Korean manufacturers in protective trade
Yang Ji Yun | galileo@ | 2017-04-25 09:58:25
Strict protective trade by Trump
Shipbuilding industry in trouble for many years
“Korean demand 2% down this year”
“Market diversification effect should be minimized”
[Digital Times, Yang Jee-yoon] The global steel market is expected to bottom out last year and enter a full-fledged upturn this year. The global economy is turning into a growth phase and demand for China, which accounts for half of world steel consumption, is recovering. In contrast to this, the Korean steel industry has analyzed that it is not easy to avoid the difficulty this year due to the overlapping of the protection trade barrier by the US Trump government and the recession of shipbuilding industry.
According to the World Steel Association on April 24, global demand for steel is expected to reach KRW 1.535 billion tons this year, 1.3% higher than last year. This is an increase of 25 million tons (0.8 % points) from 1.51 billion tons (0.5% increase) in October last year.
The steel demand outlook is higher than last year as China is expected to enter growth. China accounts for about half of global steel production and consumption of steel products. The World Steel Association predicted that China`s steel demand in 2006 was 666 million tons, down 1% from the previous year, however actual demand was 681 million tons (up 1.3%). Experts recognize that demand for automotive steel and construction steel products have increased due to increased sales of local automobiles and robust real estate market.
The World Steel Association revised its Chinese market forecast of 681 million tons, which was expected to decline 2%, as this atmosphere is expected to continue this year. Steel demand in Russia and Latin America was expected to increase by 3.2 % and 3.5 %, respectively. North America, which the Trump administration launched, is expected to grow 2.2 % and 2.4 % this year and next year, respectively.
Demand in Asia is expected to increase by 1% this year and decrease by 0.1% next year. The Asian region is the only region where the growth rate is expected to be down. The domestic steel industry, including POSCO, Hyundai Steel, Dongkuk Steel, and SeAH Steel, is expected to see uncertainties in the business this year. In Trump`s government, it is tightening US protectionist tradition, including an increase in tariffs on the final dumping duties and an order to the Commerce Department to investigate whether imports of foreign steel are harming US security. In addition, the shipbuilding industry, which accounts for 20% of domestic steel demand, is also experiencing difficulties due to deteriorating market conditions for several years. As a result, the domestic steel industry is suffering from a sudden slowdown such as the inability to apply rising raw material prices to shipbuilding steel products in time.
In steel industries, the outlook for domestic steel demand is expected to be 2% lower than last year. "The Trump government`s protectionism will not have a significant impact on global demand," said a researcher who asked for anonymity. "However, Korea, China and Japan are likely to reduce North American exports. We need to minimize the side effects in the direction of diversifying the market."
By Yang Ji Yun galileo@
[ copyright ⓒ The Digitaltimes ]
Shipbuilding industry in trouble for many years
“Korean demand 2% down this year”
“Market diversification effect should be minimized”
[Digital Times, Yang Jee-yoon] The global steel market is expected to bottom out last year and enter a full-fledged upturn this year. The global economy is turning into a growth phase and demand for China, which accounts for half of world steel consumption, is recovering. In contrast to this, the Korean steel industry has analyzed that it is not easy to avoid the difficulty this year due to the overlapping of the protection trade barrier by the US Trump government and the recession of shipbuilding industry.
According to the World Steel Association on April 24, global demand for steel is expected to reach KRW 1.535 billion tons this year, 1.3% higher than last year. This is an increase of 25 million tons (0.8 % points) from 1.51 billion tons (0.5% increase) in October last year.
The steel demand outlook is higher than last year as China is expected to enter growth. China accounts for about half of global steel production and consumption of steel products. The World Steel Association predicted that China`s steel demand in 2006 was 666 million tons, down 1% from the previous year, however actual demand was 681 million tons (up 1.3%). Experts recognize that demand for automotive steel and construction steel products have increased due to increased sales of local automobiles and robust real estate market.
The World Steel Association revised its Chinese market forecast of 681 million tons, which was expected to decline 2%, as this atmosphere is expected to continue this year. Steel demand in Russia and Latin America was expected to increase by 3.2 % and 3.5 %, respectively. North America, which the Trump administration launched, is expected to grow 2.2 % and 2.4 % this year and next year, respectively.
Demand in Asia is expected to increase by 1% this year and decrease by 0.1% next year. The Asian region is the only region where the growth rate is expected to be down. The domestic steel industry, including POSCO, Hyundai Steel, Dongkuk Steel, and SeAH Steel, is expected to see uncertainties in the business this year. In Trump`s government, it is tightening US protectionist tradition, including an increase in tariffs on the final dumping duties and an order to the Commerce Department to investigate whether imports of foreign steel are harming US security. In addition, the shipbuilding industry, which accounts for 20% of domestic steel demand, is also experiencing difficulties due to deteriorating market conditions for several years. As a result, the domestic steel industry is suffering from a sudden slowdown such as the inability to apply rising raw material prices to shipbuilding steel products in time.
In steel industries, the outlook for domestic steel demand is expected to be 2% lower than last year. "The Trump government`s protectionism will not have a significant impact on global demand," said a researcher who asked for anonymity. "However, Korea, China and Japan are likely to reduce North American exports. We need to minimize the side effects in the direction of diversifying the market."
By Yang Ji Yun galileo@