Domestic steel consumption fell to the lowest level in 23 years in 2025. However, with imports down and exports holding up, domestic production saw a comparatively smaller decline. The steel industry cites deepening weakness in demand sectors such as construction as the main reason for the drop in domestic consumption.
According to the Korea Iron & Steel Association on the 12th, Korea's nominal steel consumption in 2025 totaled 44,222,564 tons, down 7.6% from a year earlier. Nominal domestic steel consumption is calculated by subtracting export volumes from steel produced domestically and adding imports, indicating the volume consumed in Korea. It was the first time since 2002 that the figure fell below 45 million tons.
Nominal domestic steel consumption surpassed 50 million tons by reaching 55.2 million tons in 2007, and—except for 2009 and 2020, when it was hit by the financial crisis and the COVID-19 pandemic—consistently remained above 50 million tons. Then in 2024 it slipped below 50 million tons to 47.87 million tons, and in 2025 even fell below 45 million tons.
The decline in nominal steel consumption was largely due to the failure of the construction market to recover. According to the Construction Association of Korea, last year's domestic construction completed value was 143.6949 trillion won, down 15.5% from the previous year.
In this environment, with imports of steel plunging and exports remaining firm, domestic production registered a relatively smaller decline.
Last year, steel imports were 860,000 tons, down 10.6% from a year earlier, while exports were 28.25 million tons, edging down just 0.4%. As a result, production came to 72.47 million tons, a decline limited to 4.9%.
The industry believes the drop in imports stems from the government's provisional anti-dumping tariffs on low-priced imported steel imposed last year. Since September last year, the Ministry of Economy and Finance has levied tariffs of up to 33.57% on hot-rolled carbon steel and alloy steel products from China and Japan. The tariff period, initially set to run through Jan. 22, was extended to June 22.
Exports, which were feared to shrink sharply as the United States and Europe tightened trade barriers by raising tariffs and reducing duty-free quotas, held up thanks to the development of new markets. According to the steel association, exports to the United States and Europe each fell 8% from a year earlier, while shipments to Vietnam rose 21.8% and to Brazil jumped 230.2%.
The steel industry expects market conditions to recover this year. Earlier, Hyundai Steel said on a conference call, "In the domestic market, the impact of tariffs on hot-rolled products is set to be fully reflected, and with dumping investigations underway for galvanized and color-coated steel sheets, we expect imports of low-priced steel to continue to fall," adding, "Rebar and structural steel are also expected to see sales recover due to last year's base effect."
However, with recovery in the construction market uncertain, some say the restructuring of the steel industry needs to accelerate. Jung Eun-mi, a senior research fellow at the Korea Institute for Industrial Economics & Trade (KIET), said, "To fundamentally overcome the crisis, the industrial structure must be advanced around high value-added products," adding, "The outlook for this year is not exactly bright, and steelmakers' profitability is low, so the government should push ahead with swift industrial restructuring through measures such as the K-Steel Act."