POSRI, the research institute of South Korean steelmaker POSCO, has stated that it expects hot rolled coil (HRC) demand in the South Korean domestic market to rise by two percent year on year to 33.6 million mt in 2012.
POSRI stated that the key customers for domestic production HRC, including the automotive industry, cold rolled mills and steel tube producers, are expected to continue to show reduced demand for HRC in the first half of the year, followed by an improvement in the second half. It is expected that South Korean domestic auto output will total 4.7 million units in 2012, up one percent year on year.
As for exports, following a 35 percent year-on-year increase in South Korea's HRC exports in 2011 to 6.4 million mt, HRC export volumes in 2012 are foreseen to rise to 6.5 million mt. However, due to the global financial uncertainty, HRC demand from Southeast Asia and Japan may see a decrease.
Meanwhile, South Korea's HRC imports are expected to see a six percent year-on-year decrease to 4.9 million mt in 2012 due to increased domestic HRC output and sluggish demand from end-users. In 2012, South Korea's HRC output is expected to reach 35.2 million mt.