Korean related institutions predict that the profitability of Korean cold-rolled products will improve in the second half of the year, but there is still uncertainty due to the uncertainty of domestic demand in Korea and the substantial growth of China's raw material imports.
According to Korean industry insiders, Korean domestic cold-rolling companies adjusted the tonnage of shipments in the middle of the year to increase profits and become more flexible in obtaining raw materials. In particular, raw material costs are expected to decrease as raw material demand shrinks and raw materials are obtained from China, Japan, Vietnam and India.
At the same time, as part of improving profit in the second half of the year, Korean domestic cold-rolling companies will increase shipments of high value-added products without adjusting prices. However, due to the significant increase in imports from China, the domestic market demand in Korea is limited, and steel mills are worried that product profits will fall.