Steel imports plunge 67 pct in Q1: report

SEOUL, April 24 (Yonhap) -- South Korea's imports of steel products plunged 67.6
percent on-year in the first quarter as the domestic economic slump curtailed
demand, an industry report said Friday.

The report by the Korea Iron and Steel Association said imports reached 122,000
tons, with overall market share of foreign-made iron rods and steel plates
falling to just 4.5 percent from 13 percent last year. The domestic market topped
11.35 million tons in the cited period.
The South Korean economy contracted 4.3 percent on-year in the first three
months, with production of cars and ships that use large amounts of steel
products hit hard in recent months.
The weak economy has also hurt the private construction sector, that had been the
main consumer of imported iron rods used to reinforce buildings and structures.
The association said that the recent decision by China to withdraw various export
incentives for steel products also played a role in imports.
Chinese products which totaled 1.07 million tons or 71 percent of all imports
last year, fell 87 percent annually from January through March.
For 2009 the umbrella organization, which represents the interests of steel mills
and related companies, predicted the domestic market size will likely contract by
around 20 percent on-year or by two million tons.
yonngong@yna.co.kr
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