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.