POSRI Estimates Korean Steel Consumption Drops by 10% in 2009

Mr. Jun-han Kim, institute head of POSCO Research Institute (POSRI), said South Korean steel consumption is expected to decrease by 10% to 54 million tonnes in 2009 from 2008. Mr. Kim anticipated the demand from manufacturing industry, automobile, electric appliance or machinery except for shipbuilding drop. The demand could rise from building construction and civil engineering in 2009. Mr. Kim presented a forecast that steel export decreases by around 10% in 2009 from 2008 and crude steel output in South Korea reduces by 10% to 58 million tonnes.

Mr. Kim accepted an interview by Japan Metal Bulletin and said South Korean steel export may decrease by over 10% in 2009 from 20 million tonnes in 2008. He said steel import decreases by 5 million tonnes to 25 million tonnes due to slower domestic demand.

South Korean automobile output in November 2008 decreased to the same level in financial crisis 10 years ago. Mr. Kim prospected the automobile output reduces by over 10% in 2009 from 4 million cars in 2008 and the appliance output decreases by 10% while South Korean shipbuilding expand by 10% to 15 million gross tonnes.

Mr. Kim said the demand from civil engineering, including public and private sectors, is expected to increase by over 10% thanks to governmental economic measures while residential demand keeps slow in 2009. A specialized agency source forecasts the amount of construction investment increases by 2% to 120 trillion won in 2009 from 2008.