International Steel Mills

US OCTG Weakness Affecting Japan & South Korea

Written by Sandy Williams


According to The TEX Report, Japan will decrease its shipment of hot rolled coil to South Korea beginning in February. Orders from South Korea for February shipments of HRC have dropped, in some cases by nearly half, due to weakened demand for OCTG in the U.S.

Last year Japan exported 2,045,000 tonnes (2,254,188 net tons) of HRC to South Korea, 30-40 percent for use by pipe mills that export products primarily to the U.S. Hot rolled exports from Japan to South Korea were down 7.7 percent in 2014.

South Korean export of OCTG was not deterred by the imposition of US International Trade Commission anti-dumping duties last summer. Finished steel imports from South Korea totaled 5,370,000 net tons, up 44 percent from 2013, according to data analysis by AISI.

The TEX Report suggests weaker OCTG demand, due to the drop in oil prices, may prompt Korean manufacturers to switch to cheaper Chinese produced hot rolled coil.

The TEX Report, an English daily newspaper published in Japan, reports on various news arising in each sector of raw materials for steel production, trade of steel products, resources and energy.

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