【Reducing Demand for Korean Domestic Rebar】
Demand for construction in Korea has drastically decreased. It is because the demand for condominium building in Korea has been overturned and demand is expected to decrease in the second half of 2018.
South Korea's real estate prices, such as demand for mini-condominiums due to the decline in interest rates that had supported Korea rebuilding demand so far, and tenure rights at the time of rebuilding real estate owners specializing in Korea, temporarily declined, 10 to 15 It has risen over the long term span of the year. Like the Chinese steel market in the past two years, it has risen to the right despite repeating raise and lower.
Hyundai Steel also stepped into large-scale production
However, due to the lack of economic policy in the present sentence regime, the capital investment that the large enterprises surely carries out is increased by President Lee / President Park, the chaebol from the administration before that and the supportive measures centered on large companies However, the current situation that the unemployment rate is considered as an increase in the unemployment rate from the fact that small business in general society does not grow up and employment is not created, and the unemployment rate is over 10% in the 20s to 30s, I can not explain besides showing a shadow.
Until last year the supply of steel rebar was tightened due to the elimination of land bars and steel rebar shortage in Korea, but the fact that the rebar supply is excessive, the distribution unit selling price to general contractors has fallen sharply , Hyundai Iron and Steel Co., Ltd., the biggest manufacturer of Korean reinforcement bars, is steering a significant reduction in production. We also reduced production in April, but we need to drastically reduce production to adjust the supply and demand, and we are adjusting it to amplify the reduction of production in May and June from the scale of 30,000 tons in April.
In April, Hyundai Steel decided to export about 4,000 MT for reinforcing steel to the United States, but as demand in Korea will decline in the future, it may change the direction to export rebar and export billet, but before that It can be regarded as a task of adjusting the balance between domestic supply and demand by reducing production.
The fact that Hyundai Steel Co., Ltd., the biggest steel maker, has moved to production reduction means that five other companies have to move to production cuts. If we estimate from the fact that the amount of reinforced bar produced in Korea was increased to 11 million tons in 2017, it would be reduced by 150 to 2 million tons in annual terms, including a decrease in demand, that is, It is nothing other than thinning again.
【Domestic market too weakly from longevity】
Looking at the domestic situation, the Tokyo Ironmaker, the domestic major electric furnace maker, has raised the price in small increments since April 11. From the fact that foreign exchange fluctuated to the yen weak, the overseas products market has been high, buying came from Vietnam · Taiwan, its price became benchmark and pushed up the Tokyo Gulf Coast FAS. The current price is 34,500 yen to high 35,000 yen, but the upper price is a heavy impression in the future.
Export quotations and Tokyo Iron and Steel Utsunomiya are different from the Kanto quota involved in price formation, and the market price in western Japan (Kinki and China area) has not been increased so much, it can be seen from the price difference that the relaxation of iron scrap supply and demand in Japan is relaxed. It can be seen that it is a temporary price walk alone.
The purchase price of the Utsunomiya factory that Tokyo Steelmaking has brought to the Gulf shipyards to blow. The company is in a situation where iron scrap prices rise several thousand yen is not a painful situation, but Tokyo Gulf Cooperator suffers when competing in price too much. As shipping destined for exports will be declining in the future, as long as new negotiations for Korea do not proceed, it will settle at this price level once.
Considering from the domestic and external factors, there is no pressure to rise The present iron scrap rate. However, it is an interesting market as the appearance changes completely even with a single trigger. What kind of aspect will you show next? I can not wait to have fun.