Latest news with #POSCO
Al Etihad
3 days ago
- Business
- Al Etihad
US aluminium, steel prices jump, shares drop on Trump's new tariffs
2 June 2025 16:46 LONDON/SEOUL/SINGAPORE (Reuters) US prices of steel and aluminium spiked on Monday while shares of foreign steelmakers slumped after US President Donald Trump said he would double tariffs on imports of the two metals to 50%. Trump announced on Friday the new steel and aluminium levies, which take effect on June 4, intensifying a global trade war. The US is the world's largest steel importer, excluding the European Union, with a total of 26.2 million tons of steel imported in 2024, according to the Department of some industry experts questioned whether the tariffs will be implemented as stated, in light of Trump's earlier reversals, they said uncertainty and climbing prices of the metals would dampen industrial activity."Higher prices are also likely to weigh further on US steel demand from the manufacturing sector, which we already expect to contract this year," said analyst Eoin Dinsmore at Goldman premium for consumers buying aluminium on the physical market in the United States jumped 54% while US hot rolled coil steel climbed by 5%.Germany's second-biggest steelmaker Salzgitter warned that Washington's tariff policy was dealing a severe blow to European United States accounted for around a fifth of European steel exports outside of the EU, according to Germany's steel were sceptical about whether the full force of the tariffs as announced on Friday would come into the tariff shift was applauded by US aluminium producers, who said the move would stop a "flood" of imports."For decades, subsidized foreign producers have hollowed out domestic aluminum manufacturing," said Mark Duffy, president of the American Primary Aluminum of US steelmakers climbed in premarket trade, with Nucor, Cleveland-Cliffs and Steel Dynamics surging between 14% and 26%. ASIAN STEEL SHARES SLIDE Shares of steelmakers eroded in South Korea, which was the fourth-biggest exporter of steel to the United States last year, behind Canada, Mexico and Brazil, according to American Iron and Steel Institute Korea's Industry Ministry said in a statement that it had held an emergency meeting with officials from the country's major steelmakers, including POSCO and Hyundai Steel . Shares of South Korean steelmakers POSCO and Hyundai Steel fell 3% and SeAH Steel Corp tumbled 8%.In Vietnam, steel companies Hoa Sen Group, Nam Kim Steel and Vietnam Steel Corp skidded from 2.7% to 3.4%.The 50% tariffs will add to the challenges facing Korean steel exporters, which have refrained from sharply boosting exports to the US to avoid Washington's scrutiny, despite rising US steel prices, an industry executive told and aluminium tariffs were among the earliest Trump imposed when he returned to office in January. The tariffs of 25% on most steel and aluminium imported to the US went into effect on March 12. TRADE TALKS South Korea, a major US ally, has called for an exemption from tariffs on steel, autos and others items, during talks with the United States. Seoul agreed in late April to craft a trade package by the end of the 90-day pause on Trump's reciprocal tariffs in July, but it has been difficult for negotiators to make big decisions due to a political leadership vacuum ahead of elections on late March, Hyundai Steel announced a plan to build a $5.8 billion factory in Louisiana in response to US tariffs, but the factory will not open until 2029. In April, Hyundai Steel's bigger rival POSCO signed a preliminary deal to make an equity investment in the factory India, which relies heavily on the US for aluminium exports, industry experts also warned of a major hit."This is going to have a detrimental impact," BK Bhatia, director-general at the Federation of Indian Mineral Industries, the country's leading mining body, told Reuters. "The US is the biggest market for Indian aluminium. Government has been negotiating so we are hopeful that with talks, the tariffs will come down."
The Star
3 days ago
- Business
- The Star
Emerging Markets -Asian shares fall on Trump's steel tariff threat but currencies steady
SINGAPORE (Reuters): Asian equities fell on Monday, dragged by losses in South Korean and Vietnamese steelmakers, after US President Donald Trump threatened to double tariffs on imported steel and aluminium, while regional currencies held firm against a softer dollar. Trading volumes were thin overall due to a public holiday in the region, with markets in China, Thailand and Malaysia remaining closed. Trump's announcement late on Friday to double tariffs on imported steel and aluminium to 50% intensified a global trade war and came just hours after he accused China of violating an agreement to mutually roll back tariffs on critical minerals. Shares in South Korea fell 0.5% on Monday, with steelmakers POSCO and Hyundai Steel falling 3% and SeAH Steel Corp down as much as 12.6%. In Vietnam, major steelmaker Hoa Sen Group fell 5.8%. Investors were cautious as markets digested tariff uncertainty and geopolitical risk, including from the latest developments in Ukraine and Russia, said Junvum Kim, a sales trader at Saxo Capital Markets. Ukraine's overnight drone strikes hit Russia's Kursk and Voronezh regions triggering residential fires and disrupting traffic. Shares in Taiwan and Indonesia fell more than 1.5% each, while those in Singapore and India slipped 0.5%, each. The Indonesian benchmark index emerged as the best performer regionally in May, adding more than 6%, and Monday's trading could be due to profit-taking, said Fakhrul Fulvian, an economist at Trimegah Securities. Data showed Indonesia's annual inflation rate at 1.60% in May, slowing more sharply than expected. Currencies in the region were largely steady, with the South Korean won advancing 0.7%. The Indian rupee, and Singapore dollar advanced 0.2%. The Taiwanese dollar , however, lost 0.2%. The US. dollar declined 0.5% as mounting fiscal concerns and a broad "Sell America" wave continued to weigh on U.S. assets from stocks to Treasuries. "In the Asean region, we expect the currencies to further appreciate this year as global investors spread their holdings more widely after years of heavy U.S. positioning," Maybank analysts said in a research note. On Tuesday, South Koreans go to the polls in a snap presidential election to replace Yoon Suk Yeol, who was ousted from office in April after his brief martial law attempt sent shockwaves through the country. Investors are also awaiting inflation figures from Taiwan, South Korea and the Philippines later this week. - Reuters
TimesLIVE
3 days ago
- Business
- TimesLIVE
South Korea to minimise affect of 50% tariff on steel products: ministry
The ministry held an emergency meeting with officials from the country's major steelmakers, including POSCO and Hyundai Steel, it said in a statement. Shares of South Korean steelmakers lost ground on Monday, with POSCO and Hyundai Steel falling 3% and SeAH Steel Corp down 6.3% in morning trade. South Korea was the fourth-biggest exporter of steel to the US, behind Canada, Mexico and Brazil last year, according to American Iron and Steel Institute data. South Korea, a major US ally, has called for the exemption of tariffs on steel, autos and others items, during talks with the US. Seoul agreed in late April to craft a trade package by the end of the 90-day pause on Trump's reciprocal tariffs in July, but it has been difficult for negotiators to make big decisions due to a political leadership vacuum. In late March, Hyundai Steel announced a plan to build a $5.8bn (R104.05bn) factory in Louisiana in response to US tariffs, but the factory will not open until 2029. In April, Hyundai Steel's bigger rival POSCO signed a preliminary deal to make an equity investment in the factory project.
The Star
3 days ago
- Business
- The Star
Steelmakers in South Korea, Vietnam tumble on Trump's new tariffs
SEOUL/SINGAPORE: Shares in South Korean and Vietnamese steelmakers, major Asian exporters of the metal to the United States, dropped on Monday after U.S. President Donald Trump said he would double tariffs on imported steel and aluminium to 50%. Trump announced on Friday the new steel and aluminium levies, which take effect on June 4, intensifying a global trade war just hours after he accused China of violating an agreement with the U.S. to mutually roll back tariffs and trade restrictions for critical minerals. Steel industry experts said that while the increased tariff would cause significant disruption for major exporters to the United States, the rates could go down in light of some of Trump's trade policy reversals. "Frequent shifts in the Trump administration's tariff policies introduce considerable uncertainty regarding the actual impact ... I think the final result will be far lower than initially projected, especially concerning its duration," said Chelsea Ye, senior analyst at metals research firm McCloskey. South Korea's Industry Ministry said on Monday it would respond to the 50% tariff on steel products as part of its trade discussions with Washington in order to minimise the impact on industry. South Korea was the fourth-biggest exporter of steel to the United States last year, behind Canada, Mexico and Brazil, according to American Iron and Steel Institute data. South Korea's Industry Ministry said in a statement that it had held an emergency meeting with officials from the country's major steelmakers, including POSCO and Hyundai Steel . Shares of South Korean steelmakers lost ground on Monday, with POSCO and Hyundai Steel falling 3% and SeAH Steel Corp down 8%. In Vietnam, major steelmakers Hoa Sen Group and Nam Kim Steel fell 2.8% and 3.4% respectively. Vietnam Steel Corp also fell 2.7%. Vietnam's exports of steel and steel products to the U.S. fell 27% in the first four months of this year, government data showed. The 50% tariffs will add to the challenges facing Korean steel exporters, which have refrained from sharply boosting exports to the U.S. to avoid Washington's scrutiny, despite rising U.S. steel prices, an industry executive told Reuters. "It will be a burden to exporting companies if there are no additional steel price increases in the U.S," he told Reuters, asking not to be identified due to the sensitivity of the issue. Despite tariffs, South Korea's steel shipments to the United States rose 12% in April from a year earlier, according to trade data. Steel and aluminium tariffs were among the earliest Trump imposed when he returned to office in January. The tariffs of 25% on most steel and aluminium imported to the U.S. went into effect on March 12. Industry officials said the tariffs had increased U.S. steel prices, affecting several sectors, including home appliances, cars, and construction. In Europe, Germany's second-biggest steelmaker Salzgitter warned that Washington's tariff policy was dealing a severe blow to European industry. TRADE TALKS South Korea, a major U.S. ally, has called for an exemption from tariffs on steel, autos and others items, during talks with the United States. Seoul agreed in late April to craft a trade package by the end of the 90-day pause on Trump's reciprocal tariffs in July, but it has been difficult for negotiators to make big decisions due to a political leadership vacuum ahead of elections on Tuesday. In late March, Hyundai Steel announced a plan to build a $5.8 billion factory in Louisiana in response to U.S. tariffs, but the factory will not open until 2029. In April, Hyundai Steel's bigger rival POSCO signed a preliminary deal to make an equity investment in the factory project. In India, which relies heavily on the U.S. for aluminium exports, industry experts also warned of a major hit. "This is going to have a detrimental impact," B.K. Bhatia, director-general at the Federation of Indian Mineral Industries, the country's leading mining body, told Reuters. "The U.S. is the biggest market for Indian aluminium. Government has been negotiating so we are hopeful that with talks, the tariffs will come down." The U.S. is the world's largest steel importer, excluding the European Union, with a total of 26.2 million tons of imported steel in 2024, according to the Department of Commerce. As a result, the new tariffs will likely increase steel prices across the board, hitting industry and consumers alike. "The latest hike will prompt these sellers to renegotiate with their U.S. buyers on how to, and who, will shoulder the extra 25% cost," said Thaiseer Jaffar, founder of Dubai-based steel industry event organiser Global Steel Summit. - Reuters
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
South Korea to minimise impact of 50% tariff on steel products, says ministry
Despite tariffs, South Korea's steel shipments to the US rose 12% in April from a year earlier, according to trade data. (Freepik pic) SEOUL : South Korea's industry ministry said today that it will respond to the looming 50% US tariff on steel products as part of its trade discussions with Washington in order to minimise the impact on industry. US President Donald Trump said on Friday he planned to increase tariffs on imported steel and aluminium to 50% from 25% starting Wednesday, ratcheting up pressure on global steel producers and deepening his trade war. South Korea is the fourth-biggest exporter of steel to the US, behind Canada, Mexico and Brazil last year, according to American Iron and Steel Institute data. South Korea's industry ministry said in a statement that it had held an emergency meeting with officials from the country's major steelmakers, including POSCO and Hyundai Steel. Shares of South Korean steelmakers lost ground today, with POSCO and Hyundai Steel falling 3% and SeAH Steel Corp down 6.3% in morning trade. The 50% tariffs will add challenge to Korean steel exporters which have refrained from sharply boosting exports to the US to avoid Washington scrutiny, despite rising US steel prices, an industry executive told Reuters. 'It will be a burden to exporting companies, if there are no additional steel price increases in the US,' he told Reuters, asking not to be identified due to the sensitivity of the issue. Despite tariffs, South Korea's steel shipments to the US rose 12% in April from a year earlier, according to trade data. Steel and aluminium tariffs were among the earliest put into effect by Trump when he returned to office in January. The tariffs of 25% on most steel and aluminium imported to the US went into effect on March 12. Industry officials said the tariffs have increased steel prices in the US, impacting several sectors, including home appliances, cars, and construction. Trade talks South Korea, a major US ally, has called for the exemption of tariffs on steel, autos and others items, during talks with the US. Seoul agreed in late April to craft a trade package by the end of the 90-day pause on Trump's reciprocal tariffs in July, but it has been difficult for negotiators to make big decisions due to a political leadership vacuum. In late March, Hyundai Steel announced a plan to build a US$5.8 billion factory in Louisiana in response to US tariffs, but the factory will not open until 2029. In April, Hyundai Steel's bigger rival POSCO signed a preliminary deal to make an equity investment in the factory project.
