Most Popular
-
1
Actor Jung Woo-sung admits to being father of model Moon Ga-bi’s child
-
2
Wealthy parents ditch Korean passports to get kids into international school
-
3
Man convicted after binge eating to avoid military service
-
4
First snow to fall in Seoul on Wednesday
-
5
Final push to forge UN treaty on plastic pollution set to begin in Busan
-
6
Korea to hold own memorial for forced labor victims, boycotting Japan’s
-
7
Nvidia CEO signals Samsung’s imminent shipment of AI chips
-
8
Job creation lowest on record among under-30s
-
9
Industry experts predicts tough choices as NewJeans' ultimatum nears
-
10
NK troops disguised as 'indigenous' people in Far East for combat against Ukraine: report
Korean steelmakers remain cautious on tariff uncertainty
By Kim Bo-gyungPublished : March 23, 2018 - 16:07
Local steelmakers on Friday remained cautious following the US’ decision to pause imposing 25 percent tariffs on Korean steel products until the end of April.
“The temporary exemption is a positive sign, but uncertainty continues as the decision is not a definitive one,” said the spokesperson of Korea Iron and Steel Organization.
“We will fully support the government to persuade the US for permanent exemption.”
Due to the temporary exemption, tariffs won’t be levied on steel and aluminum imported from Korea until the end next month, when negotiations for permanent exemptions is scheduled to be completed.
“The temporary exemption is a positive sign, but uncertainty continues as the decision is not a definitive one,” said the spokesperson of Korea Iron and Steel Organization.
“We will fully support the government to persuade the US for permanent exemption.”
Due to the temporary exemption, tariffs won’t be levied on steel and aluminum imported from Korea until the end next month, when negotiations for permanent exemptions is scheduled to be completed.
US President Donald Trump on Thursday evening, local time, authorized temporary exemptions on steel and aluminum products shipped from South Korea and six other regions: the EU, Australia, Argentina, Brazil, Canada, and Mexico.
Earlier this month, Trump had signed two proclamations slapping a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports over national security concerns, widely seen as penalties aimed at China.
This had sent shock waves to some Korean steelmakers with Dongkuk Steel temporarily suspending shipments to the US starting April.
“Although the month-long exemption is a positive move, it hasn’t changed anything as for now,” said the spokesperson of Dongkuk Steel.
“We still have to wait for a final announcement to readjust product price with clients.”
Shipments to the US makes up some 3-4 percent of Dongkuk Steel’s annual revenue.
It is one of Korea’s top three steelmakers alongside Posco and Hyundai Steel.
Husteel had also stopped operating its factory line that makes products exported to the US earlier this month.
Echoing Dongkuk Steel’s stance, Posco and Hyundai Steel said they will also wait until a final decision is made, and cooperate with the government for permanent exemptions.
On positive market reaction to the temporary tariff exemption shares of local steelmakers rose in the morning.
Dougu Steel’s value sore 20.43 percent to 13,850 won per stock at 9:05 a.m. compared to Thursday’s close.
Posco C&C, the steel sheet-making arm of Posco, saw a 2.26 percent raise, and Hyundai Steel 0.59 percent.
By Kim Bo-gyung (lisakim425@heraldcorp.com)
