Showing no signs of any recovery in most consuming sectors except automobile Domestic distribution market for hot-rolled coils (HR) is in a lot of difficultiesdue to supply shortage and weak demand. Despite being in a seasonal high-demand period from April through May, supply of both domestic HR and imported products to the distribution market is not so smooth and demand not only from construction sector, but also from most of others except automobile is showing no signs of any recovery, making the distributorsdifficult to shake off the current slump. In a steel product distribution market at Shiheung, Seoul where a large number of small-scale HR distributors stand close together, the buying has been extremely dull since the beginning of April with no more frequent calls by small-size customers in particular. An official at a distributor said that a rise in speculative demand in connection with an increase in the retail prices and the advanceto January-February in the completion of major rehabilitation works at the flood-hit areas across the country have brought about such a slump in the distribution market in April-May, although a seasonal high-demand period has set in. Another distribution market official in the Hanam Ind. Complex, Gwangju said, ‘I believe that those distributors who are located in Seouland Shinhwa Ind. Complex andBanwol Ind. Complex of Incheon-Kyunggi area may be in a better position. Since most of small-scale end-users in Hanam Ind. Complex are in a lot of difficulties in purchasing raw materials amid short supply mainly due to their operation of small-scale businesses, and so, it is not so easy for distributors to apply any increase in the new unit prices to them. Therefore, most of distributors find it difficult to even maintain theircurrent businesses due to HR supply shortages as well as such a problem in pricing,‘ adding, there is a lot of small-size distributors giving up their businesses these days. A seasonal high-demand period when new construction works used to begin has arrived, but purchase of HR for construction use is decreasing due to severe business slowdown. jhkwak@snmnews.com