POSCO Research Institute expects South Korean hot rolled flat steel demand, output and export will hit the record for 2012. The export is more than import as 2011 when the import will decrease for 2 years in a row. South Korean demand of steel plate would decrease for the first time in 3 years while the output would hit the record. South Korea would turn into net plate export in second half of 2012. South Koran steel makers have to develop offshore market when the supply keeps higher than the domestic demand for the major flat steel items.
The institute sees South Korean hot rolled flat steel demand increases by 2.2% to 33.6 million tonnes for 2012 from 2011. The production renews record for 3 years in a row while 3.6% of the increase is smaller than the growth in 2011. The export increases by 2.7% while the import decreases by 6.4%. The net export increases by 500,000 tonnes to 1.61 million tonnes. The institute sees the plate demand for 2012 is 2.01 million tonnes lower than the peak in 2008. The net import decreases to slightly less than 1 million tonnes compared with slightly more than 6 million tonnes in 2008. The institute sees South Korean flat rolled steel consumption decreases by 0.7% to 30.82 million tonnes for 2012 from 2011. The plate consumption decreases due to slow demand for shipbuilding. The flat rolled steel export increases and the import decreases due to the higher output.