Posted on 11 Mar 2025
On March 12, the United States will impose a 25% tariff on steel and aluminum imports, including those from South Korea, which had previously been exempted. This announcement by President Donald Trump has sent ripples through the global steel industry, prompting South Korean companies to expedite their export shipments to the U.S. in a race against time.
The steel industry in South Korea is advancing schedules to ensure that export volumes reach the U.S. before the tariffs take effect. An industry insider revealed on March 10 that companies are utilizing all available means, such as securing additional shipping space, to send as many products as possible. "Following President Trump’s announcement of the tariff imposition, the industry has been busy advancing schedules to ensure that the export volumes reach the U.S. by March 12," the insider stated.
At Pyeongtaek Port in Gyeonggi Province, steel products are stacked high as companies prioritize production and expedite delivery for U.S.-bound products, delaying orders for other regions. South Korea exports approximately 2.63 million tons of steel to the U.S. annually, with steel pipes accounting for the largest share at 1.09 million tons, followed by hot-rolled steel sheets (500,000 tons), heavy plates (188,000 tons), and color-coated steel sheets (150,000 tons). Companies like SeAH Steel and Husteel primarily produce steel pipes, while POSCO and Hyundai Steel focus on hot-rolled and heavy plates.
The urgency of the situation is underscored by the logistical challenges faced by the industry. "It usually takes about two weeks for shipments to reach the U.S. West Coast. We have prioritized production and expedited delivery for U.S.-bound products by delaying orders for other regions," a source explained. Companies reportedly aligned their production and shipping operations last month with the goal of maximizing shipments to the U.S. in response to the tariff imposition.
The industry is hopeful that government trade negotiations might address the tariff imposition, but with only two days remaining before the tariffs take effect, no significant updates have been reported. SeAH Steel plans to increase local production at its U.S. plant to counter the tariffs, but POSCO and other companies without local production facilities face difficulties in responding. "Since few companies have local production facilities, pushing as much volume as possible is the best strategy," noted an industry insider.
Meanwhile, U.S. steel companies have raised product prices in line with the tariffs. According to CRU, the price of hot-rolled steel sheets distributed in the U.S. in the fourth week of February was $998 per metric ton, up about 32% from $757 in the third week of January. An industry insider commented on the rising prices of steel products in the U.S. ahead of the tariff imposition, noting, "The current distribution price of Korean hot-rolled steel is around 820,000 won. Considering logistics costs and tariffs, exports are feasible at around 1.3 million won. If the current situation persists, price competitiveness will not be compromised."
Source:Business Korea
