Dongkuk records 30% plunge in plate sales in 2013

Dongkuk Steel, South Korea’s third-largest steelmaker, reported a 30.2% fall in plate sales last year on the back of increased domestic competition and continuing weak demand for the product.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

It sold a total of 1.84 million tonnes in the whole of 2013, down from 2.64 million tonnes in 2012, Dongkuk said in its annual results report posted early this week on its website.

The figure compares with the steelmaker’s installed plate capacity of 3.4 million tpy and with sales of 3.32 million tonnes in 2011, according to the report.

Consumption of plate, which Dongkuk considers its “anchor product”, has been affected by lower demand from the shipbuilding and construction industries and competition from Posco and Hyundai Steel – South Korea’s largest and second-largest steelmakers, respectively.

However, it recorded a 9.4% increase in long steel shipments. They totalled 3.46 million tonnes last year, up from 3.16 million tonnes in 2012.

Crude steel output was virtually unchanged year-on-year, at 3.33 million tonnes in 2013 compared with 3.31 million tonnes in the preceding year.

Production of plate and long steel tracked its sales closely, with plate output falling to 1.85 million tonnes last year from 2.62 million tonnes in the preceding year, and that of long steel increasing to 3.54 million tonnes from 3.20 million tonnes.

As previously disclosed, Dongkuk swung to an operating profit of 81.1 billion Won ($76.6 million) in 2013 as a result of cost reduction and its focus on the sale of high-quality steel plate.

Apart from 3.4 million tpy of plates, Dongkuk can produce as much as 2.5 million tpy of rebar and 1.2 million tpy of section.

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
The fallout from Russia’s invasion of Ukraine is changing global trade flows for bauxite, with Brazilian material once again flowing into China and with the introduction of export restrictions elsewhere likely to influence availability through 2023
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.