Four large distributors are trying to monopolize the special steel bar market in the Gyeonggi-Incheon area of South Korea, according to Korea Metal Journal. The distributors in question are Wonil Special Steel, Youngjin STECO, Youngdeungpo Special Steel and Hanlip Steel, which mainly deal in S45C carbon steel, SCM alloy steel, tool steel and mold steel.
The distributors are focusing all their efforts on increasing their sales volumes rather than seeking any specialization in sales of products of certain steel types. Their competition for sales of tool steel and mold steel is particularly fierce, as the market size is limited.
In the case of sales of foreign tool steel imported from China, Japan and countries in Europe, the distributors are competing to lower their selling prices. Meanwhile, small distributors have been caught in the crossfire and are finding it difficult to survive.