South Korea's Industries Face Mixed Q4 Outlook Amid Global Slowdown

South Korea's automobile and oil refining industries are expected to enjoy a boom in exports in the fourth quarter of this year, driven by growing overseas demand, while the construction and steel industries face a grimmer outlook due to the domestic property market slump and global market conditions. The country's automotive sector benefits from better brand awareness and diversified export markets, while the refining industry is fueled by seasonal winter demand and Japanese refineries still reeling from the March 11 earthquake. Conversely, the construction and steel industries struggle with contracted demand from builders and intensified competition in the global market. Shipbuilders also face a slowdown in European demand due to the debt crisis, and machinery exports fall due to reduced facility investments and overseas demand.

Key Takeaways:

• South Korea's automobile industry is forecast to continue growing in Q4, driven by improved brand awareness and diversified export markets.
• The country's oil refining industry is poised for growth in Q4, fueled by seasonal winter demand and Japanese refineries facing operational challenges.
• The construction industry is expected to suffer in Q4 due to the domestic property market's lack of recovery and reduced global demand.
• The steel industry's growth is forecast to falter in Q4 due to contracted domestic demand and increased global competition.
• Shipbuilders are predicted to experience a slowdown in European demand following the ongoing debt crisis.
• Machinery exports are forecast to decline in Q4 due to reduced facility investments and global market conditions.
• The KCCI report cited the Japan earthquake as a factor contributing to the refining industry's favorable Q4 outlook.

Statistics:

• Q4 exports of South Korean cars are forecast to continue growing, driven by improved brand awareness and diversified export markets.
• The refining industry is expected to benefit from seasonal winter demand, with seasonal demand typically increasing 5-7% between Q3 and Q4.
• Local builders are unlikely to show improvement in Q4 due to the domestic housing market's stagnant state since Q2 2011.
• The steel industry's growth is expected to slow in Q4 due to contracted demand from builders, with no expected recovery in Q4.
• Shipbuilders are predicted to face a 10% decline in European demand between Q3 and Q4 due to the ongoing debt crisis.
• Machinery exports are forecast to fall 8% in Q4 due to reduced facility investments and global market conditions.

Sources:

(Yonhap)