South Korea's imports of Chinese hot rolled coil (HRC) indicated a sharp increase in July, both on month-on-month and year-on-year basis.
According to the Korea Iron and Steel Association (KOSA), in July South Korea's imports of HRC from China totaled 188,476 mt, up 39.8 percent year on year and rising by 43 percent as compared to June this year. On the other hand, in July exports of HRC from South Korea to China increased by 20.3 percent month on month to 14,117 mt but were down 13.9 percent compared to July last year.
Such a high rise in the inflow of Chinese HRC to South Korea in July resulted from the declines witnessed in Chinese import prices more than anything else. Offer prices for Chinese origin HRC have dropped by $10/mt almost every week since June.
Meanwhile, in South Korea's HRC trade with Japan, both imports and exports declined in July. Exports of HRC from South Korea to Japan in July this year amounted to 76,943 mt, down 13.2 percent year on year and decreasing by six percent month on month. South Korea's imports of HRC from Japan in July dropped by 9.1 percent to 222,881 mt as compared with June.
South Korea's HRC exports to Southeast Asia in July were down 0.4 percent month on month to 165,194 mt.