Chinese demand keeps Korean steel export steady in June

South Korean steel exports in June were close to levels a year earlier as Chinese demand began to pick up from the impact of Covid-19.

Steel exports exceeded 2.6mn t in June, down just 0.3pc from a year earlier, data from South Korea's ministry of trade, industry and energy (Motie) showed. Shipments to major markets such as the US and Japan declined but higher shipments to China largely offset those declines as factory reopenings spurred industrial activity.

Motie did not provide a breakdown of export data, but steel shipments to China in June rose by 64pc on the year to $430mn. That increase came even as South Korea's average steel export price dropped by 21pc on the year in June to $715/t. Motie attributed part of the decline to slumping demand in the US and EU.

South Korea's overall June steel exports slid by 21pc from a year earlier to $2.05bn. May exports decreased by 35pc from a year earlier to $1.78bn.

South Korean steelmakers have reduced production because of the demand downturn. Posco cut its 2020 output forecast by 7.1pc in April to 34.1mn t and warned of more production cuts if demand remained weak after June.

By Tony Cox