"With a drop of 30 percent from the previous quarter in orders received from the machine tool sector, we have begun feeling the decline in demand for castings. Our order receipt from shipbuilders has also decreased to a large extent, and there is a sign of a fall in demand in the automotive sector, which has been relatively strong," said an official from the South Korean casting industry, explaining the recent business trend of the industry, as reported by Korea Metal Journal.
In contrast to the first half and the third quarter of this year when local South Korean foundries enjoyed an increase in their output, the South Korean casting industry is worried about a possible further fall in orders received in the fourth quarter of the year.
"It is unavoidable that a drop in orders received from shipbuilders will be seen in the wake of the global financial crisis triggered by Europe, as most shipowners are European," said the casting industry official. "Order receipt for castings for use in small-size boats is still decent, but we have a hard time in winning orders for castings for use in large-size vessels," he concluded.