South Korea’s rolled aluminium product import to sustain growth supported by LV demand

Auto sales in South Korea's domestic market dropped in October on less business days, industry data showed last week. The number of car sales by five South Korean companies, including Hyundai, Kia, Renault Samsung, GM Korea and Ssangyong, totalled 112,729 in October, down 11 per cent from previous year. Light vehicles sales, a major market for automotive aluminium sheet, is also showing muted growth- a trend which is likely to impact LV production in the country and hence, the overall rolled aluminium product import.

However, international trade data shows that aluminium plates, sheets and strips import by South Korea has increased year-on-year since 2014. From 76971 tonnes in 2014 the volume reached 211,411 tonnes in 2016. In 2017, aluminium plates, sheets and strips import is estimated to reach 290,909 tonnes (worth US$1.01 billion), given macroeconomic scenario changes for the better.

The South Korean LV segment, which consumes a lot of aluminium sheets and plates, started the year 2017 on a positive note; sales grew significantly during the first two months. However, given the low economic growth coupled with the political turmoil in the country, overall sales for 2017 is expected to decline compared to 2016. On the assembly front, total light vehicle assembly is expected to remain flat, reaching slightly above 4 million units towards the end of the forecast window.

Import of aluminium rolled products by South Korea, which has a correlation with LV production growth, will keep growing at a moderate pace until the time the market gets a direction.