Korea's steel demand is expected to grow by 2.9% in 2023

Recently, the World Steel Association released the latest short-term (2023-2024) steel demand forecast report. The report shows that South Korean steel demand is expected to grow by 2.9% in 2023.

It is understood that in 2022, factors such as reduced investment in infrastructure construction in South Korea, reduced activity in the construction industry, and floods at Posco Steel's steel mills have led to a significant contraction in South Korean steel demand. Since the beginning of this year, the performance of the South Korean steel industry has rebounded.

It is reported that in the first quarter of last year, due to the impact of the epidemic, the demand for automobiles, home appliances, construction, and other goods in South Korea increased, and the corresponding demand for steel also increased. At the same time, the price of iron ore has significantly increased, and the price of steel has also increased, resulting in an improvement in business performance.

The South Korean steel industry is looking forward to an improvement in performance recovery momentum after the second quarter and is optimistic about China's role in it. In the second half of this year, the South Korean market's expectation of increasing demand for China steel is rising, and China's real estate development boom index has also increased month on month for three consecutive months.

In addition, the second quarter is the peak season for steel market consumption, and its performance is also expected to improve. The relevant personage of the South Korean steel industry said: "In the second quarter, the price of raw materials such as iron ore will remain at a high level, and the rising trend of steel prices is strong. In addition to the impact of factors such as Türkiye's post earthquake reconstruction projects, China's economic recovery, and so on, the steel exports of South Korean steel enterprises are expected to increase in the second half of this year.