Tip:
Highlight text to annotate it
X
in part three of our five-part series on korea's industrial competitiveness... we take a look
at the steel and petrochemical sectors... which have been hit hard by sluggish global
demand. ji myung-kil reports on the prospects and
challenges that lie ahead. korean steel makers are facing another tough year ahead.
the steel market is suffering from a global glut with supply exceeding demand by about
540 million tons some 300 million tons from china.
market analysts say the steel market's ability to recover will hinge largely on how rapid
ly the chinese government will cut the nation 's production capacity.
korean steel makers are no exceptions.
although the prospects for the global economy are improving... it will take the steel industry
some time to regain its momentum as the global demand for steel isn't bouncing back.
hyundai steel is planning to ride out the global glut by differentiating itself from
the rest of the pack by supplying more steel plates to its car-making and shipbuilding
affiliates -- hyundai motor and hyundai heavy industries.
with an oversupply of steel worldwide... korean companies like hyundai steel plan to special
ize in a special kind of next-generation steel to gain an edge over their global competitor
s. and with the completion of a new blast furnace last year they hope to produce more
than 20 million tons of steel this year.
the outlook for korea's petrochemical industry does not seem much better as it is heavily
dependent on exports to china which itself is suffering from an oversupply.
there are two risk factors related to china . more than 50 percent of korea's petrochemical
exports are shipped to china. second as china relies more on its own petrochemical products
... korean petrochemical exports to china may fall.
while waiting for a better time for the industry korean petrochemical companies are also seeking
to boost their competitiveness. lg chem and lotte chemical for example are
building petrochemical plants in oil-rich countries in central asia to lower their production
costs and diverisify their clients. ji myung-kil arirang news.