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Several large steel enterprises in South Korea shut down production one after another
On June 16, part of the production facilities of many production lines of POSCO, South Korea's largest steel producer, began to shut down for the first time since the financial crisis in 2009. The continuous shutdown of Korean steel enterprises is mainly due to the sudden drop in steel demand of downstream customers such as automobile, shipbuilding, construction, etc.
Take the automobile industry with 30% steel demand as an example. According to the data from the Ministry of industry, commerce and resources of South Korea, the automobile production of South Korea in May was only 230000, a decrease of 40% year on year. At the same time, the price of iron ore raw materials in the upstream industry keeps rising, which makes the operation of Korean steel enterprises even worse.