US interested in Korean washing machine Safe Guard…Color steel sheet companies in ‘concern’
Yang Ji-yoon | galileo@dt.co.kr | 2017-10-17 14:40:37
[Digital Times, Yang Ji-yoon] The United States is going to hold a public hearing this week to launch a `safeguard` on Korean washing machines. Colored steel plates are widely applied to white goods such as refrigerators and washing machines, automobiles, and interior and exterior materials for buildings.
If US President Donald Trump approves Safeguard after a public hearing, it is likely that the color steel industry as well as the domestic electronics industry will be hit hard.
According to the Korea Iron and Steel Association on October 16, exports of color steel plate in January-August this year totaled 854,681 tons, up 12 % from the same period last year. Exports have been on the rise in recent years as the overall consumer electronics market grew by 16%, compared with 744,500 tons in January ~ August 2015.
Dongkuk Steel Mill has a production capacity of 750,000 tons and has the world`s largest production capacity as a single plant. POSCO Steel (300,000 tons), SeAH Steel Corp. (210,000 tons) and Hyundai Steel (170,000 tons) are among the major producers in Korea.
If the Trump government imposes emergency import restrictions on the washing machines of Samsung Electronics and LG Electronics, domestic steel makers supplying color steel plate will be hit hard in the steel industry. The US government has already imposed tariffs on surface-treated steel plates, including zinc-coated steel plates and color steel plates, ranging from 9% to 40%. If safeguard measures are also applied to washing machines exported to the US from Thailand, Vietnam, and Mexico, steel makers` sales volume will inevitably decline due to the contraction in demand.
Especially, Dongkuk Steel, which has the largest sales dependence on color steel plates among steel big 3, including POSCO and Hyundai Steel, may be negatively affected by earnings. Dongkuk Steel`s color steel accounts for 15% of its total sales. Among them, sales of color steel plates for home appliances last year accounted for 64%. Dongkuk Steel Co. said, "The US is firmly pressing the steel industry demand industry not only for steel but also for safeguarding the safety of washing machines." He added, "We are looking at market changes such as increasing production of high value- We will look at it and prepare a countermeasure."
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If US President Donald Trump approves Safeguard after a public hearing, it is likely that the color steel industry as well as the domestic electronics industry will be hit hard.
According to the Korea Iron and Steel Association on October 16, exports of color steel plate in January-August this year totaled 854,681 tons, up 12 % from the same period last year. Exports have been on the rise in recent years as the overall consumer electronics market grew by 16%, compared with 744,500 tons in January ~ August 2015.
Dongkuk Steel Mill has a production capacity of 750,000 tons and has the world`s largest production capacity as a single plant. POSCO Steel (300,000 tons), SeAH Steel Corp. (210,000 tons) and Hyundai Steel (170,000 tons) are among the major producers in Korea.
If the Trump government imposes emergency import restrictions on the washing machines of Samsung Electronics and LG Electronics, domestic steel makers supplying color steel plate will be hit hard in the steel industry. The US government has already imposed tariffs on surface-treated steel plates, including zinc-coated steel plates and color steel plates, ranging from 9% to 40%. If safeguard measures are also applied to washing machines exported to the US from Thailand, Vietnam, and Mexico, steel makers` sales volume will inevitably decline due to the contraction in demand.
Especially, Dongkuk Steel, which has the largest sales dependence on color steel plates among steel big 3, including POSCO and Hyundai Steel, may be negatively affected by earnings. Dongkuk Steel`s color steel accounts for 15% of its total sales. Among them, sales of color steel plates for home appliances last year accounted for 64%. Dongkuk Steel Co. said, "The US is firmly pressing the steel industry demand industry not only for steel but also for safeguarding the safety of washing machines." He added, "We are looking at market changes such as increasing production of high value- We will look at it and prepare a countermeasure."