Investments by major U.S. tech companies in artificial intelligence (AI) data centers are significantly reshaping South Korea's steel export landscape. This year, exports of H-beams, pipes, and heavy plates used in data center construction have seen remarkable growth. Notably, exports of H-beams to the U.S. have surged more than threefold, while heavy plates and pipes have also recorded double-digit increases, emerging as new export champions for the steel industry.
According to trade statistics from the Korea Iron and Steel Association released on August 11, steel exports to the U.S. reached 538,474 tons in July, nearly tripling (an increase of 186.2%) compared to the same month last year.
Among the various products, the increase in H-beam exports stands out. Exports of H-beams to the U.S. rose from 18,061 tons in July last year to 56,171 tons in July this year, marking a 211.0% increase. Cumulative exports from January to July this year totaled 205,885 tons, up 148.9% from 82,712 tons during the same period last year.
Heavy plates and pipes have also shown impressive performance. Exports of heavy plates to the U.S. reached 33,607 tons in July, a significant increase from 2,422 tons in the same month last year. Cumulative exports from January to July this year amounted to 114,730 tons, a 17.4% increase from 97,767 tons in the same period last year.
In June, exports of pipes to the U.S. were 120,807 tons, up 34.1% from 90,089 tons in June last year. During the same period, total pipe exports increased from 155,356 tons to 194,185 tons, a rise of 25.0%. From January to June, exports of pipes to the U.S. reached 670,647 tons, an 18.8% increase compared to the same period last year, surpassing the overall growth rate.
These steel products are crucial for the construction of AI data centers and power infrastructure. H-beams are used as structural steel for data center buildings, while heavy plates are utilized in power generation and transformation equipment, and pipes are employed in cooling and piping systems. Industry experts believe that the ongoing expansion of AI data centers by U.S. tech giants is driving increased demand for these materials.
In response, South Korean steel companies are accelerating their efforts to target this market. POSCO is enhancing its supply of electrical steel sheets and high-performance steel structures to align with the large-scale needs of AI data centers. Hyundai Steel is expanding sales of steel for data centers, energy storage systems (ESS), and transmission networks. Dongkuk Steel is developing a special steel product called 'D-Megabeam' to penetrate the data center market.
An industry insider stated, "As investments in AI data centers grow, the demand for not only construction H-beams but also heavy plates for power generation and transformation equipment is likely to increase significantly. In a situation where traditional demand is shrinking due to a downturn in the domestic construction market, the AI infrastructure market is expected to become a new growth driver for the steel industry."
* This article has been translated by AI.
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