Korea: 8% growth in steel demand

Korea: 8% growth in steel demand

Analysts predict that domestic steel demand in Korea will gain 8 percent in 2002 due to strong performances in the automobile and construction sectors. Both of these sectors consume the bulk of steel products according to POSCO Research Institute (POSRI), a research sector at Korea's POSCO, the nation's largest steel mill. Insiders are predicting that steel exports will decrease this year as compared to last year as a result of tightening global steel markets. Market watchers expect by-product, bar and beam items to grow by 10 percent in 2002 while cold-rolled sheets are expected to increase by 7 percent. Korean steel firms have so far exported 13.84 million tons this year which is a decreae of 4.9 percent compared to 2001. Economists report this is largely due to stiffer global markets. South Korea has seen a sharp rise in steel consumption as its economy has begun to come out of its slump. Consumption of steel mills' products went to 6.7 million tons between January to February 2002. Korea's Iron and Steel Association (KISA) reports it's a 21% hike from the previous year. Imports took a jump to 35% as demand picked up to 2.1 million tons in the first two months of 2002. Production at locals mills rose by 7.3% to 8 million tons and crude steel production rose by 3.4% to 7 million tons KISA indicated. Though, statistics show steel mill products consumption on a sharp rise, steel exports decreased by 14.1% to 2.1 million tons for January to February 2002.