Cost Burden of High Carbon Steel Enterprises in Korea is Increasing

Since the beginning of this year, Korean high carbon steel enterprises are generally facing the challenge of increasing cost burden. In fact, since 2018, the development of Korean high carbon steel enterprises has been difficult. Relevant practitioners expressed concern about this.

In 2018, the operating profit and net profit of three high carbon steel enterprises in Korea declined, with total operating income of 33.953 billion won, down 27.8% from the same period last year, and total net profit of 15.983 billion won, down 47.4% from the same period last year.

Industry insiders in South Korea pointed out that the main reason for the increase in cost burden of high carbon steel enterprises in South Korea this year was the high cost of raw materials procurement and the decline of automobile production for three consecutive years. At the same time, due to the fierce competition of Chinese related products, Korean high carbon steel has encountered some difficulties in export.