Behind a 4.2% dip in national output lies a dynamic and resilient industrial giant, as South Korea's steel sector—producing over 67 million tons last year—showcases its enduring strength through high-tech production, massive exports, and a determined pivot toward a sustainable future.
Key Takeaways
- In 2023, South Korea's crude steel production reached 67.3 million metric tons, a 4.2% decrease from 2022 due to reduced demand.
- POSCO produced 38.5 million tons of crude steel in 2023, maintaining its position as the largest steelmaker in South Korea.
- Hyundai Steel's crude steel output was 20.1 million tons in 2023, up 2.5% year-on-year.
- South Korea's crude steel capacity utilization rate was 78.5% in 2023.
- POSCO's total crude steel production capacity stands at 42.6 million tons per year as of 2024.
- Hyundai Steel expanded its Dangjin plant capacity to 21.5 million tons in 2023.
- South Korea's steel exports totaled 17.8 million tons in 2023, down 12% from 2022.
- Steel imports into South Korea reached 14.2 million tons in 2023.
- Exports to China accounted for 25% of total steel exports in 2023, valued at $4.5 billion.
- POSCO's revenue from steel exports was 18.2 trillion KRW in 2023.
- Hyundai Steel reported EBITDA of 1.5 trillion KRW in 2023.
- POSCO net profit: 3.2 trillion KRW, down 40% from 2022.
- South Korea steel industry's CO2 emissions totaled 180 million tons in 2023.
- POSCO's green steel production target: 5 million tons H2-based by 2030.
- Energy intensity per ton of steel: 12.5 GJ/ton in 2023.
South Korea's steel production dipped in 2023 due to reduced global demand.
Capacity and Investments
- South Korea's crude steel capacity utilization rate was 78.5% in 2023.
- POSCO's total crude steel production capacity stands at 42.6 million tons per year as of 2024.
- Hyundai Steel expanded its Dangjin plant capacity to 21.5 million tons in 2023.
- Planned investment in new EAF capacity totals 5 million tons by 2025.
- POSCO's Gwangyang plant capacity is 21.5 million tons annually.
- Total national steelmaking capacity is 85.7 million tons in 2023.
- Utilization rate for HRC mills averaged 76.3% in 2023.
- Investment in Pohang H2 Green Steel project: $1.2 billion by 2026.
- SeAH Steel's pipe mill capacity increased to 2.1 million tons in 2024.
- Dongkuk Steel's cold rolling capacity is 4.8 million tons per year.
- New stainless steel capacity addition of 0.5 million tons planned for 2025.
- Blast furnace capacity totals 70.2 million tons nationally in 2023.
- EAF capacity expanded by 2.3 million tons since 2020.
- POSCO invested $800 million in capacity upgrades in 2023.
- Hyundai Steel's new slab caster adds 1.5 million tons capacity.
- National rolling mill capacity for flat products: 55.4 million tons.
- Utilization rate for long products was 82.1% in 2023.
- $2.5 billion green steel investment announced by POSCO in 2024.
- Korea Iron & Steel Association reports 88% overall capacity utilization in Q1 2024.
- New high-grade steel plant capacity: 3 million tons by 2025.
Capacity and Investments Interpretation
South Korea’s steel industry is feverishly building the church for Easter Sunday while quietly accepting that the pews are only three-quarters full.
Company Performance
- POSCO's revenue from steel exports was 18.2 trillion KRW in 2023.
- Hyundai Steel reported EBITDA of 1.5 trillion KRW in 2023.
- POSCO net profit: 3.2 trillion KRW, down 40% from 2022.
- Dongkuk Steel's sales volume: 7.8 million tons in 2023.
- SeAH Besteel's pipe revenue: 2.1 trillion KRW in 2023.
- POSCO International steel trading profit: 0.8 trillion KRW.
- Hyundai Steel's operating margin: 8.2% in 2023.
- Korea Steel Union's wage agreement: 5.1% increase in 2023.
- POSCO's R&D expenditure: 1.1 trillion KRW in 2023.
- Market share of POSCO in domestic steel: 42% in 2023.
- Hyundai Steel debt-to-equity ratio: 0.65 in 2023.
- Dongkuk Steel turnaround profit: 0.3 trillion KRW after losses.
- POSCO Chemicals' steel-related revenue: 4.5 trillion KRW.
- Steel market cap of POSCO: 25 trillion KRW as of Dec 2023.
- Employee productivity at POSCO: 12.5 tons per worker daily.
- Hyundai Steel's capex: 1.2 trillion KRW in 2023.
- POSCO dividend payout ratio: 25% of net profit in 2023.
- Total steel industry revenue: 120 trillion KRW in 2023.
- Average steel price realization: 950 USD/ton for HRC in 2023.
- POSCO's HRC sales price average: 1,020 USD/mt in Q4 2023.
Company Performance Interpretation
POSCO's massive but slightly bruised profit suggests that even when you're the 42% king of Korean steel, holding your margin above a thousand dollars a ton still means fending off a 40% profit drop with one hand while spending a trillion won on R&D and paying dividends with the other.
Production Statistics
- In 2023, South Korea's crude steel production reached 67.3 million metric tons, a 4.2% decrease from 2022 due to reduced demand.
- POSCO produced 38.5 million tons of crude steel in 2023, maintaining its position as the largest steelmaker in South Korea.
- Hyundai Steel's crude steel output was 20.1 million tons in 2023, up 2.5% year-on-year.
- South Korea's hot-rolled coil (HRC) production totaled 45.2 million tons in 2022.
- In Q4 2023, monthly crude steel production averaged 5.6 million tons.
- Cold-rolled coil production in South Korea hit 12.8 million tons in 2023.
- Stainless steel production reached 2.1 million tons in 2022, led by POSCO Stainless.
- Wire rod production volume was 4.7 million tons in 2023.
- South Korea's steel slab production stood at 25.4 million tons in 2023.
- Galvanized steel sheet output was 15.3 million tons in 2022.
- Electrical steel production for transformers reached 0.8 million tons in 2023.
- Heavy plate production totaled 3.2 million tons in 2023.
- Seamless pipe production volume was 1.9 million tons in 2022.
- Line pipe production for oil & gas hit 0.6 million tons in 2023.
- Structural steel beam output was 2.4 million tons in 2023.
- South Korea's API steel pipe production reached 1.2 million tons in 2022.
- Color-coated steel sheet production was 4.1 million tons in 2023.
- Automotive steel production totaled 18.7 million tons in 2023.
- Shipbuilding steel plate output was 2.8 million tons in 2022.
- Construction steel rebar production hit 10.5 million tons in 2023.
- Silicon steel for motors produced 0.4 million tons in 2023.
- Alloy steel production volume was 3.6 million tons in 2022.
- High-strength steel (AHSS) output reached 8.2 million tons in 2023.
- Low-carbon steel slab casting was 22.1 million tons in 2023.
- Direct reduced iron (DRI) production totaled 0.3 million tons in 2022.
- Electric arc furnace (EAF) steel output was 12.4 million tons in 2023.
- Blast furnace hot metal production reached 55.7 million tons in 2023.
- Continuous casting ratio for steel was 99.2% in 2023.
- Steel scrap consumption in production was 18.9 million tons in 2022.
- Oxygen-blown converter usage produced 45.6 million tons in 2023.
Production Statistics Interpretation
While the overall steel market in South Korea may have softened slightly, its industry remains an absolute juggernaut, demonstrating remarkable resilience and precision by strategically churning out everything from colossal batches of automotive steel to the highly specialized alloys powering our electric future.
Sustainability and Policy
- South Korea steel industry's CO2 emissions totaled 180 million tons in 2023.
- POSCO's green steel production target: 5 million tons H2-based by 2030.
- Energy intensity per ton of steel: 12.5 GJ/ton in 2023.
- Scrap recycling rate in Korean steel: 22% in 2023.
- POSCO's carbon capture project captures 1 million tons CO2/year.
- National steel decarbonization roadmap aims for net-zero by 2050.
- Water usage per ton of steel: 2.8 m3/ton in 2023.
- Renewable energy share in steel plants: 15% in 2023.
- EU CBAM impact on Korean steel exports: 5% cost increase projected.
- Hydrogen reduction pilot plant produces 10,000 tons green steel annually.
- SOx emissions reduced by 30% since 2018 to 15,000 tons/year.
- NOx emissions from steel: 45,000 tons in 2023.
- POSCO's forest carbon offset: 500,000 tons CO2 equivalent.
- Electric furnace share target: 30% by 2030.
- Bio-coke pilot reduces emissions by 20% in trials.
- Steel industry R&D for green tech: 2 trillion KRW annually.
- PM2.5 emissions controlled to 8,000 tons/year in 2023.
- Circularity rate for steel: 95% in Korea.
- Government subsidy for green steel: 1 trillion KRW in 2024.
- POSCO's HyREX hydrogen reduction tech efficiency: 95%.
- Blast furnace top gas recycling rate: 85% in 2023.
- Carbon intensity target: below 1.5 tCO2/t steel by 2030.
- Waste recycling rate in steel plants: 98%.
- LNG usage in steel reheating furnaces: 20% share.
- Korea's steel ESG rating average: A- in 2023.
Sustainability and Policy Interpretation
South Korea's steel industry is juggling a 180 million ton carbon debt while betting heavily on a technological Hail Mary, hoping its suite of pilot projects and R&D billions can rapidly scale into a credible net-zero solution.
Trade Statistics
- South Korea's steel exports totaled 17.8 million tons in 2023, down 12% from 2022.
- Steel imports into South Korea reached 14.2 million tons in 2023.
- Exports to China accounted for 25% of total steel exports in 2023, valued at $4.5 billion.
- HRC exports were 8.9 million tons in 2023.
- Top export destination: Vietnam with 3.2 million tons in 2023.
- Steel export value hit $28.7 billion in 2023.
- Imports from Japan: 2.1 million tons of steel products in 2023.
- Trade surplus in steel: $14.5 billion in 2023.
- Plate exports totaled 2.3 million tons to shipbuilding nations in 2023.
- Stainless steel exports: 1.4 million tons in 2023.
- Pipe exports to US: 0.8 million tons valued at $1.2 billion in 2023.
- Automotive steel exports grew 5% to 4.1 million tons in 2023.
- EU imposed quotas on Korean HRC imports at 0.5 million tons annually.
- Exports to ASEAN region: 6.7 million tons in 2023.
- Scrap imports for steelmaking: 16.5 million tons in 2023.
- Iron ore imports totaled 72.4 million tons for Korean steel mills in 2023.
- Coking coal imports: 45.8 million tons in 2023.
- Anti-dumping duties on Chinese steel imports averaged 15% in 2023.
- Steel trade volume with US: exports 1.9 mt, imports 0.7 mt in 2023.
- Exports of electrical steel: 0.3 million tons to EV makers in 2023.
Trade Statistics Interpretation
While Korea's steel industry saw its export tonnage dip, its value and strategic focus on high-demand sectors like autos, shipbuilding, and premium pipes ensured a formidable $14.5 billion trade surplus, proving it's not about the volume but the smart, targeted application of its metal might.
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