SHI raises medium plate import from China

SHI raises medium plate import from China

South Korean Samsung Heavy Industry (SHI) recently signed a contract with China's Baosteel to double its medium plate import from China. SHI will reportedly start to purchase medium plate from Baosteel in November 2005. The contract with Baosteel means that China will account for 6-8 percent of SHI's total medium plate consumption. Anshan Steel, the sole medium plate supplier to SHI prior to the deal with Baosteel, supplies about 4-5 percent of SHI's medium plate consumption. SHI currently imports 50 percent of its medium plate from Japan, with 45 percent coming from domestic steelmakers like POSCO and Dongkuk Steel. A spokesman from SHI expressed that the company decided to purchase more medium plate from China since China's products have been much cheaper than domestic medium plate. Furthermore, since the market price of medium plate from Japan has been higher than that of South Korean plate, SHI will reduce its imports from Japan while upping its imports from China.