Yonhap reported that South Korea's crude steel output is expected to rise by 11% in 2011 on increased capacity.

According to the Korea Iron & Steel Association, steelmakers, including POSCO and Hyundai Steel Co, are forecast to produce 64.31 million tonnes of crude steel in 2011.

In April 2010, Hyundai Steel, a unit of top automaker Hyundai Motor Group, started its first ever blast furnace operations in South Korea with an annual production capacity of 4 million tonnes. In November 2010, Hyundai Steel also started its second blast furnace with a capacity of 4 million tonnes.

Dongbu Steel Co, South Korea's fourth largest steelmaker, also completed an electric arc furnace with an annual capacity of 3 million tonnes in November 2009.

KOSA said that domestic demand for steel products is expected to rise 3.8% to 53.91 million tonnes. It added that exports of steel products are forecast to rise 4.4% to 25.79 million tonnes and imports of steel to drop 12% to 22.02 million tonnes.

KOSA said that steel output in South Korea is expected to rise to a record in 2011 on the back of solid demand from auto and appliance makers. Production of steel products, including hot rolled coils and heavy plates, is forecast to rise 5.8% to 69.1 million tonnes.

(Sourced from www.yonhapnews.co.kr)