Common Efforts
The Korea Iron and Steel Association (KOSA), the Korea Offshore & Shipbuilding Association, and the Korea Shipowners’ Association held a joint seminar on April 15 at the POSCO P&S Tower located in Yeoksam-dong, Seoul. The conference was attended by more than 250 persons who discussed how to tide over the current recession in industries that has lasted for years, and how to better work together.
“The steel sector shipped out 5.3 million tons of iron and steel products, which is equivalent to 20 percent of total shipments, to the shipbuilding sector last year while exporting and importing 500 million tons of products via sea routes,” said Oh Il-hwan, permanent vice chairman of the KOSA. He continued, “Joint growth of the steel, shipbuilding, and shipping industries based on demand creation is increasing its importance these days,” adding, “We need to find new growth drivers together if we are to be able to take the lead in economic recovery.”
Dr. Jeong Eun-mi at the Korea Institute for Industrial Economics & Trade made a presentation on the topic of Steel Demand Forecasts and Measures for Co-prosperity amid the Structural Change in the Shipbuilding Industry. “The three sectors should shaKorea Institute for Industrial Economics & Tradre their vision and continue their cooperation based on mutual trust.” She added, “The quantitative and qualitative changes in the shipbuilding and shipping industries determine the steel demand, and thus the steel sector has to work on new types of products.”
Woori Investment & Securities research analyst Yu Jae-hoon followed her with the theme of Global Energy Market Change and the Maritime Industry. “The prices of eco-friendly and high-efficiency ships, two of the specialties of Korean shipbuilders, will continue to rise in the merchant vessel segment, along with the demand for drill ships and floating type production facilities as the development of maritime resources is accelerated.”
Dr. Kim Dae-jin at the Korea Development Bank, during his presentation, said that this year’s maritime transport market will show a slight increase from a year earlier in cargo volume, and the supply glut will be eased at least to some extent. “Most of the idle container ships and those scheduled to be delivered this year are large-scale ships, which means the potential supply will be on the rise,” he explained, continuing, “In the bulk ship segment, the supply and demand imbalance is likely to be alleviated, but the cargo volume is expected to show little growth.”