HRC sales from South Korean steel mills move towards the domestic market

According to data, sales of hot-rolled coil (HRC) by South Korea's major blast furnace steel mills, POSCO Steel and Hyundai Steel, experienced a slight decline in January compared to the previous month. Output of HRC from these mills decreased by 100,000 tons month-on-month, accompanied by a drop in sales of 45,000 tons. However, there was a notable increase in domestic demand, which rose by 65,000 tons to reach 590,000 tons, constituting 61% of total sales for both mills. This suggests a shift towards increased sales in the local market.

Growing demand for galvanized steel from domestic downstream industries has driven consumption, while HRC prices in the Japanese market have shown an uptrend. Export volumes from POSCO Steel and Hyundai Steel to India and Europe have notably declined, primarily due to disruptions in deliveries to Europe caused by the Red Sea crisis.