Reducing Dependence on US
According to steel industry sources on March 15, Dongkuk Steel Mill Co., South Korea's major steelmaker, has decided to temporarily withhold shipments to the United States from April. The company exported about 130 billion won (US$121.89 million) worth of galvanized steel sheets, a kind type of cold rolled steel sheets, to the U.S. last year. Dongkuk Steel has become the first company that halts its exports to the U.S. among the nation’s top three steel makers, including POSCO Co. and Hyundai Steel Co., following Washington's recent decision to impose heavy tariffs on steel imports.
Dongkuk Steel has decided to pause its exports to the U.S. as the U.S. is about to invoke the Section 232 of the Trade Expansion Act of 1962. Last week, U.S. President Donald Trump signed off on a plan to impose 25 percent tariffs on steel imports to protect the country’s steel industry. The company’s galvanized steel sheets are already subject to an 8.75 percent anti-dumping duty from the U.S. Accordingly, the company thinks that it is impossible to secure the price competitiveness with additional tariffs imposed.
Other companies are also raising the white flag amid fears of rising U.S. protectionism. Husteel Co. a Korea-based company mainly engaged in the manufacture and distribution of steel pipes, has stopped operation one of its crude steel production lines in its plant in Dangjin from last month. Through this line, the company exported 102.5 billion won (US$96.11 million) worth of oil pipes to the U.S. a year. However, Husteel halted its production line as the demand in the U.S. is expected to fall with the U.S.’ recent decision to impose an additional 25 percent tariff on steel imports.
An official from the steel industry said, “As it is still unclear where the future of U.S.’ trade policy will head, the industry is trying to reduce dependence on the U.S. first. It is just looking forward to hearing the good news from the government’s negotiation.”