SEOUL, KOREA - Despite an increase in order receipts by shipyards, steel makers are suffering from a decline in thick steel plate sales. Normally, shipyards' ample order backlogs lead to an increase in steelmakers' thick plate sales. The situation, however, is different today as shipyards' order receipts focused on offshore plants rather than merchant ships.
POSCO's thick plate sales stood at 1.4 million tons in the first quarter of this year, down 15 percent from a year ago and down 0.9 percent from a quarter ago.
Thick plates with a thickness of more than 6 mm are used mainly for ships or construction materials. The decline in sales of thick plates is blamed on a decline in demand from shipbuilders.
POSCO's steel sales for use in automobiles and home appliances stood at 2.03 million tons and 580,000 tons, respectively, in the first quarter of this year, up 5 percent and 6 percent year on year. Its steel sales for ship use, however, plunged by 23 percent to 680,000 tons.
