Market Characteristics and Future Growth Forecast

Along the development, the steel industry in Korea adopted 2 important strategies: scaling up the production by inducing constant enlargement of blast furnace; adopting the innovative technologies such as electric furnaces and the automation of rolling operation.

As a front-end industry, it has grown along with the automobile industry, construction, machinery, and shipbuilding industries, and the demand will be determined by whether the production volume of front-line companies increases in the future. Even after the corona pandemic, demand from major forward industries such as automobiles and shipbuilding has remained steady, and the supply and demand situation continues to be stable. The future growth of steel industry is uncertain.

On one hand, the economic developments in India and China are expected to be solid(both of which have the largest populations), resulting in robust demand in global steel industry. On the other hand, the obvious downturn in Chinese construction industry may lead to the market shrink. In addition, China could take advantage of iron ore reserve as strategic weapon against the U.S. and its allies, including Korea, resulting in the hike of steel prices. Kyungbu Resources is thoroughly managing inventory accumulation risks and liquidity risks in line with rapidly changing steel market conditions.

To strengthen the competitiveness in the market

With vigorous efforts for the technology based procurement and efficient supply of stainless steel scrap, we succeed to strengthen our competitiveness in domestic market and expand further the trading domain over the global horizon. Thanks to the continuous support of our trading partners, we are ready to leap foward higher goals in the years to come.

Based on the strong solidarity and cooperation with the trading partners, Kyungbu Resources seeks a model in which all stakeholders can enjoy common prosperity. Kyungbu Resources also has a goal/vision to help enhance the competitiveness of the domestic steel industry and contribute to the recovery for the clean climate and ecocystem.

For these purposes, Kyungbu Resources will continue to take the leading role in contributing to the sustainable economic growth and adding creative value for the clean environment of the global community.

ESG activities

The steel industry, dubbed the "rice of industry", plays an important role in economic development and human life, so managing and recycling steel related products in a sustainable manner plays critical role not only for environmental protection but also for economic sustainability. And that is why the stringent carbon neutrality policies have been put in place on the steel industry with regards to the rising ESG trend.

Kyungbu Resources responded to this trend in a proactive manner and has been striving to adopt new technologies and innovative processes for recycling stainless steel scraps.

the recycling rate of steel scrap has sharply increased leading to the efficient use of resources and environmental protection. These proactive efforts governed by the growing ESG concern worked two ways: It leads to the good financial performance of Kyungbu Resources. It is also working for Kyungbu Resources to contribute for the recycling industry to pave the new way for sustainable economic growth. Kyungbu Resources will continue to take the lead in protecting the environment through the efficient reuse of steel resources and also respond to global environmental risks and challenges in a proactive way as it has done so far.