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S.Korean steel pipe distributors face weak demand and strong competition
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South Korean distributors of steel pipes for use in plumbing works have difficulties in concluding sales at the current time amid weak demand and strong competition.

According to local distributors of steel pipes, market prices for steel pipes for plumbing have been 27-29 percent lower than producers' ex-factory prices over the past couple of weeks. However, their sales volume has not increased due to the weak demand for the products in the market. With the arrival of the seasonal low-demand period, the prolonged slump in the construction industry has caused constructors to reduce their purchases of steel pipes.

In this connection, distributors of steel pipes are delaying their purchases of steel pipes and are making efforts to reduce their inventories, especially given the weak tendency of hot rolled coil prices. Meanwhile, it is difficult for distributors to make profits due to fierce price competition for sales, with distributors' prices dropping far below producers' prices.

 
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