Primary distributors intend to hold themselves in additional imports until August Distribution of imported hot-dipped galvanized steel sheets (GI) began on a full scale in the domestic market, easing the supply shortages that the related consumers have experienced. However, marketers have become tense over a sharp rise in the inflows of the imported products into the market at once, cautiously paying their attention to the future direction in the movement of the distribution market. According to industry sources, about50,000 tons of GI are presumed to have been imported recently for the sales to distributors and small-scaleend-users from the end of May through June. In addition, about 20,000 tons are expected to be brought inby the beginning of July. Such an explosive increase in the inflows of imported GI into the distribution market during the period of two monthswould be much helpful for the consumers, who have much suffered from supply shortages, to give a sigh of relief. There is even worry about possible occurrence of temporary oversupply of GI in the distribution market, because such large volumes of GI are coming into the market with a seasonal low-demand period ahead. However, it is difficult to make light of the view from a large number of people saying that such temporary inflows of the imports into the market would not easily change the main stream of the market conditions, when taking a look at the reality that supply is absolutely short in the market compared with demand. An official at the distribution sector said, ‘A considerably large volume of GI are being imported and it is exerting a somewhat negative impact on the GI market particularly for construction materials in the May-June period.‘ In fact, although it seems difficult to say that the market price has been directly influenced by the distribution of the imported products, the retail price for GI, which had surged up to 950,000 won per ton, dropped to below 900,000 won through a series of correction that occurred after an abrupt rise in price. Coupled with recent sluggish atmosphere in demand for GI, the inflows of the imported products into the market have increased rapidly, bringing about the worry from some corners of the industry over a possible continuing price correction. An official at distribution market said, ‘In the case of those distributors who imported GI under insufficient financial capability, it is difficult to exclude a possibility to sell out the imported products at a low price in order to maintain theircash flows.‘ However, most of other distribution market officials opined, ‘Most of the firms that are importing GI are large-size primary distributors, and they are purchasing GI mainly for the purpose of storing up the products for their own inventories. Furthermore, a considerable portion of large-size cargoes is arriving for the buyers already fixed before the shipments, and so, its negative impact on the market would be limited.‘ An official at the market said, ‘Recently, import offer prices for foreign GI have dropped in the wake of the recent temporary excessive inflows of imported into the distribution market, and yet,actual contract volume is sharply decreasing. After all, the inbound shipments of those GI are foreseen to steeply fall in August and September.‘ Large-size primary distributors of imported products are reportedly holding themselves in importingadditional volume of GI until August. sunhong@snmnews.com