The European energy crisis causes a shift in South Korea’s exports from the USA to Canada. Statistics from the Korean Iron and Steel Association (KOSA) show that steel pipe exports from South Korea to the USA had declined to 76,000 tons in August, 14.8% monthly decline and 10.6% annually.
South Korea has diverted its exports from the USA to Canada. Russia halted Europe’s natural gas and oil supply, causing a price surge and an energy crisis. Europe intended to reduce its dependency on Russia, increasing its natural gas imports from Canada. The infrastructure of Canada is not sufficient for rapid supply to Europe. It is developing its infrastructure to increase the supply. South Korea’s steel pipe exports to Canada have increased by 131% and are recorded at 93,000 tons from January –August 2022.
With more steel pipes for infrastructure development, Canada’s supply is insufficient to fulfill the demand.
The natural gas and oil shortage is not only causing trade shifts from one country to another but also increasing the shift of demand from one product to another. The world is moving towards using more coal for electricity generation, as coal is the second largest source of electricity generation.
According to the Fitch Ratings, the natural gas shortage is causing thermal coal usage to increase, and more demand will push to increase the prices. Now Europe is producing more coal and has increased its use to control the electricity crisis despite causing more carbon emissions.
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