Local South Korean distributors' inventory of flat steel products increased in August compared with July due to weak demand for the products caused by the summer vacation and a seasonal rainy spell.
According to a report released by the Korea Iron & Steel Association on September 23, local distributors' inventory of flat products as of the end of August stood at 1,244,000 mt, up 4.9 percent month on month and indicating a surge of 22.9 percent year on year.
Amid growing concern about the possible occurrence of another global financial crisis like the previous one experienced in 2008, demand for flat steel products in most major consuming industries including construction, electric home appliances, shipbuilding and automobile sectors could be continuously weak for some time, analysts said.
Meanwhile, South Korea's monthly imports of flat steel products totaled 1,217,000 mt in March but decreased to 667,000 mt in July and were at 804,000 mt in August. In August, the nation's imports of hot rolled coils and thick steel plates were 310,000 mt and 125,000 mt, respectively, up 0.3 percent and 0.7 percent month on month.