South Korea likely to see a growth of 25% in aluminium foil export and 12% in import

According to a survey report, aluminium foil production in South Korea from 2006 to 2017 has been through several ups and downs. In 2006, South Korea’s aluminium foil production was at 118,275 tonnes which over the years faced an increase and decrease until it clock at 102,449 tonnes in 2017. The below graph depicts the production volume over the years in more details.

Out of this, the country exports a significant amount in various parts of the world. According to the global export-import data, South Korea’s estimated aluminium foil export in 2017 was at 65,058 tonnes out of the production volume of 102,449 tonnes. In 2016, however, the country’s estimated export volume was almost 16 per cent higher than in 2017 despite a lower production volume. While the production was at 96, 750 tonnes compared to 102,449 tonnes in 2017, the export volume was at 75,314 tonnes. Nonetheless, this year, the export volume of South Korea is expected to surpass the two previous years by around 25 per cent in 2017 and 8 per cent in 2016, to stand at 81,034 tonnes.

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Besides exporting, South Korea also imports a fair amount of aluminium foil, and according to the global data, the import rate is expected to grow year-on-year. In 2016, the country’s estimated import volume was at 46,141 tonnes, which increased by 18 per cent to 54,389 tonnes in 2017. In 2018, the expected import by South Korea is 58,238 tonnes, up 26 per cent from 2016 and 8 per cent from 2017.

The below graph shows the estimated volume of export & import by South Korea over the past 3 years:

Along with the year-on-year rise in import volume by South Korea, the country’s estimated import cost is likely to grow as well. At the end of 2018, the cost is expected to hover at US$ 232 million, up 1 per cent from US$ 230 million in 2017 and 18 per cent from US$ 196 million in 2016.

As far as the revenue from export is concerned, South Korea in 2018 is expected to see a growth by 12 per cent to US$ 644 million. However, 2017’s estimated export value failed to see a rise from its previous year as a consequence to the drop in export volume. Thus, the value was at US$ 577 million, down 1 per cent from US$ 580 million in 2016.

The below graph shows the estimated value of export & import by South Korea over the past 3 years:

Now recently, the aluminium industry in South Korea is lobbying against a Chinese aluminium major Henan Mingtai Aluminum Industrial Co.that is trying to enter the market on the back of the trade war with the USA.

If Henan Mingtai Aluminum builds a manufacturing plant at Korea, the Korean companies think, it will hit the domestic industry severely. Mingtai Aluminum is China’s second-largest aluminium rolling mill with an annual capacity of 770,000 tonnes, which is equivalent to about 80 per cent of the annual aluminium output of 1.02 million tonnes by Korean companies.