The collapse in the South Korean steel industry continues

The report predicts a decrease in the demand for local steel products, and draws attention especially to the weakness in the construction and automotive sectors. It is stated that there is still some optimism in certain sub-sectors such as shipbuilding.

However, the increase in production costs along with the decrease in sales prices negatively affects profitability. The report states that hot rolled steel sheet prices remain at low levels, but the increase in production costs makes profitability more difficult.

The increasing rate of imported steel products is also seen as a burden for domestic companies. In particular, trade barriers such as China meeting its steel demand through exports and the EU's carbon border adjustment plan increase the difficulties in the sector.

Warnings continue that the current negative environment in the steel industry will continue and that the expectation of a recovery in the short term is low.

As a result of the analysis, it is predicted that factors such as the slowdown in the local and international economy, increasing imports and the increase in production costs will continue to negatively affect the overall performance of the domestic steel industry.