Seoul: Republic of Korea’s steel shipments to the United States experienced a significant decline of over 16 percent in May compared to the previous year, following the imposition of substantial U.S. tariffs on steel and aluminum imports. Export prices also saw a decrease of more than 9 percent.
According to Lao News Agency, the U.S. government initially enforced a 25 percent tariff on all steel and aluminum imports on March 12, subsequently increasing the rate to 50 percent on June 4. This move has notably impacted Korean steel exports, which fell to $327 million in May from $390 million a year earlier. Additionally, export unit prices dropped 9.4 percent to $1,295 per ton from $1,429 during the same timeframe, as reported by the Korea International Trade Association (KITA).
A KITA official commented that the U.S. steel tariffs have started to impact Korean steel shipments as domestic steelmakers reduced their export prices to sustain a certain level of exports to the U.S. market in May.
Industry official
s anticipate that the elevated tariffs will further affect Korean steelmakers in the latter half of the year. The increased rates are expected to make Korean steel products less competitive in the U.S., prompting local clients to seek more cost-effective suppliers.
Compounding these challenges, Nippon Steel’s acquisition of U.S. Steel is projected to create additional obstacles for Korean steel exports to the U.S. starting next year.
In response, POSCO Group and Hyundai Steel Co., the two leading steelmakers in the Republic of Korea, are exploring strategies to mitigate the impact of the steep tariffs. Hyundai Steel announced plans in March to invest $5.8 billion in constructing an integrated, electric arc furnace-based steel mill in Louisiana by 2029, with production set to commence that year. POSCO has also decided to invest in Hyundai Steel’s U.S. steel mill project.
