South Korea’s imports of heavy steel to UAE markets rose by 40 per cent in the first seven months of the year, compared with the same period last year.
South Korea is considered a traditional steel importer to UAE markets, UAE-based Al-Ittihad reports.
Korean factories were affected by the influx of Chinese steel products in Korean export markets, but the Korean domestic markets maintained relative price stability during 2014 and 2015, at roughly $737-$745 per tonne without additional expenses, due to local manufacturers’ control over markets.
In order to maintain the price hike in the Korean domestic markets, the production surplus was exported at prices lower than the local market. This led to a drop in prices of these products in UAE markets by roughly $160 per tonne this August – from $710 per tonne, with shipping costs to UAE markets, in the same period of last year to $560 per tonne.
($1 = AED3.67, at the time of publishing)