South Korea aims to curb Chinese rebar imports

South Korea aims to curb Chinese rebar imports

A depressed construction industry has prompted South Korea to consider further restricting rebar imports from China. Steel industry insiders in South Korea say that Seoul is reviewing measures that will peg the allowable quantity of rebar from China fall to between 15'000 – 20'000 tons per month. During the first quarter of 2005 China exported 96'100 tons of rebar to South Korea, while April alone saw China ship 80'000 tons to South Korea. It is expected that May's numbers will be similar to April's, meaning that the imports for the first five months of 2005 could exceed 2004's total imports of 251'000 tons. A depressed construction industry is being cited as one of the main reasons Seoul is contemplating restrictions on Chinese rebar imports. South Korea's GDP increased only 4.5% in 2004, 0.5% lower than their expectations. Furthermore, 2005 first quarter GDP increased only 2%. This sluggish economic growth has restricted investment in the South Korean construction industry. Housing construction has fallen off 38% year on year, thus it is forecasted that South Korean rebar demand may be 9.5 million tons for 2005, down 16.37% year on year.