Oil country tubular goods made by SeAH Steel Corp. are shown in this photo provided the steelmaker.
SEOUL, April 14 (Korea Bizwire) — South Korea’s steel pipe exports rose sharply in the first quarter of this year on the back of the hike in international oil prices and an increase in demand for liquefied natural gas (LNG).
According to the Korea Iron & Steel Association, domestic steelmakers exported 445,009 tons of steel pipe products in the first quarter of this year, up 30.5 percent from a year ago.
Of special note, the nation’s steel pipe shipments to the U.S. jumped by 50.5 percent year on year to 276,973 tons.
This is attributable to the hike in international oil prices that led to the invigoration of the oil, shale oil and gas industries in the U.S. Korean-made steel pipes account for 23 percent of American steel pipe imports.
Another factor behind the jump in the nation’s steel pipe shipments is the increase in demand for LNG to reduce greenhouse gas emissions.
In particular, since Russia’s invasion of Ukraine, the European Union has taken steps to reduce reliance on Russian natural gas, raising the possibility that sales of steel pipes will pick up further.
To cope with increasing demand, South Korean steelmaker SeAH Steel Corp. is beefing up production capacity.
The company invested 20 billion won (US$16.3 million) in its Suncheon plant in South Jeolla Province to expand the production facilities of stainless steel pipes for use with LNG.
Kevin Lee (kevinlee@koreabizwire.com)
