Totaling 2.25 million units, up 3.2% from a year ago, led by the brisk overseas shipments bound for Europe and the Middle East Production of domestic air-conditioners, whichhad showed a downward trend until last year, is takingan upturn this year thanks to robust exports. According to the statistics from the National Statistical Office, the productionof domestic air-conditioners increased 3.2% to 2.25 million units in the first quarter compared with the same period of 2003. A fast rise in exports particularly to Europe and the Middle East played a great role in lifting the first-quarter production of air-conditioners like this. Usually, about 8-10kg of steel sheets with 0.8mm in thickness is necessary for the production of one unit of air-conditioners. For the outer cases of air-conditioners, such steel sheets as high-polymer polyester steel sheets, laminated steel sheets and printed steel sheets are being widely used. Particularly, recent electric home appliance makers' consumption trend has been changed, looking for galva-annealed steel sheets (GA) instead of electrolytic galvanized steel sheets (EGI) to meet growing requirement for high corrosion resistance. According to the figures recently released by the Korea International Trade Association, aggregate exports of air-conditioners to the Middle East from January through February this year amounted to U.S.$64 million with a surprising year-on-year jump of 115.3%, while total air-conditioner exports to Europe shot up 73.2% to U.S.$160 million in the same comparison. Forming a contrast to the annual exports to the Middle East that stood at U.S.$280 million in 2003 with a year-on-year increase of 9.7%, such a high rise in the exports from January through February this year indicated that the Middle East market is reviving. Theannual growth rate of air-conditioner exports to Europe marked 27.6% in 2003, whereas the January-February exports to the market this year soared three times higher than the yearly increase rate. By country, it was noteworthy that exports to Iran added up to U.S.$16 million in the first two-month period of the year with a whipping year-on-year surge of 151.2%. sskim@snmnews.com