U.S. President Donald Trump announced additional tariffs on imported steel and aluminum products, leading to a decline in domestic steel stocks.
SeAH Steel shares traded at 160,900 won on the Korea Composite Stock Price Index (KOSPI) at 9:14 a.m. on the 2nd, down 4.79% (8,100 won) from the previous trading day. The decline in stock prices for pipe-related companies like Husteel and DONG YANG STEEL PIPE was significant.
In addition, other steel stocks such as POSCO Holdings, Hyundai Steel, and Dongkuk Steel Mill are also showing weakness.
President Trump noted on the 30th of last month (local time) during his visit to the U.S. Steel plant in Pennsylvania that he would raise tariffs on steel and aluminum products from 25% to 50% starting on the 4th. This could pose a burden on the domestic steel sector, as it may be difficult to pass the tariff costs onto product sale prices.
However, some analyses suggest that the impact will be limited, given that major steel companies have a small share of exports to the U.S. Lee Jung-woo of DAOL Investment & Securities stated, "The export ratio of major domestic steel companies such as POSCO and Hyundai Steel to the U.S. is less than 5%, so the impact is limited," adding, "SeAH Steel has a higher export ratio of 30% to the U.S., but the price difference between import costs and distribution prices is sufficient, indicating that price competitiveness is expected to be maintained."