“Korea and US both in minus in the case of tax on Korean steel”… Only Mexico in profit
Park Jung Il | comja77@ | 2018-03-20 11:27:17
The high tariffs on imports of US steel are expected to increase the price burden not only on Korea but also on US companies. Observers say steel tariffs will not help the two countries at all and Mexico`s exports to the US will increase.
According to the Korea International Trade Association (KITA) and trade data provider Import Geuns, 20 % of US steel pipe and tube imports in 2017 were from Korea. Last year, Korea exported about 1.6 million tons of steel pipes and tubes to the US, amounting to about 1.6 billion dollars (1.7 trillion won). The number of cases is 8941, which is the largest among single countries followed by China with 5296, Germany with 4,078 and Mexico with 2,500.
Import Geuns expects the number of US companies to import steel pipes from Korea last year is about 320. Once 25% additional tariffs are imposed according to Article 232 of the US Trade Expansion Law on the 23 and import strategists point out that "US consumers need to pay higher prices and purchase related steel products, and Korean exporters should start securing alternatives," he pointed out. "Mexico has been excluded from the countries covered by this safeguard clause (Article 232)," he said. "If Mexico cannot increase the production of related steel products rapidly and increase its exports to the US, "He said.
According to a report from the World Steel Association (WSA) last October, North American steel consumption is expected to increase 1.27% to 140.4 million tonnes this year from 133.7 million tonnes last year and 4.40% to 4230 tonnes from 40.4 million tonnes in Latin America. The US is aiming to raise the self-sufficiency rate of steel (73%) to 80%, but the demand is likely to increase for the time being. In the end, if the US imposes additional tariffs on imported steel, it means that Mexican steel exports to the US are soaring, and Mexico is likely to import from Korea and other countries to fill the scarce steel demand. There is also the possibility that Mexico will gain brokerage profits between Korea and the United States. "Last year, Mexico imported about 350,000 tons of steel pipe and tube products (HS code 7304) from around the world, and about 260 importers imported about 350 foreign companies I am doing business. "
Meanwhile, according to the Steel Association, exports of US steel pipes, which were 1.1 million tons in 2015, increased by 80.9 % to 1.99 million tons last year. The shale gas boom and the increase in US mining due to rising oil prices are major factors
By Park Jung Il comja77@
[ copyright ⓒ The Digitaltimes ]
According to the Korea International Trade Association (KITA) and trade data provider Import Geuns, 20 % of US steel pipe and tube imports in 2017 were from Korea. Last year, Korea exported about 1.6 million tons of steel pipes and tubes to the US, amounting to about 1.6 billion dollars (1.7 trillion won). The number of cases is 8941, which is the largest among single countries followed by China with 5296, Germany with 4,078 and Mexico with 2,500.
Import Geuns expects the number of US companies to import steel pipes from Korea last year is about 320. Once 25% additional tariffs are imposed according to Article 232 of the US Trade Expansion Law on the 23 and import strategists point out that "US consumers need to pay higher prices and purchase related steel products, and Korean exporters should start securing alternatives," he pointed out. "Mexico has been excluded from the countries covered by this safeguard clause (Article 232)," he said. "If Mexico cannot increase the production of related steel products rapidly and increase its exports to the US, "He said.
According to a report from the World Steel Association (WSA) last October, North American steel consumption is expected to increase 1.27% to 140.4 million tonnes this year from 133.7 million tonnes last year and 4.40% to 4230 tonnes from 40.4 million tonnes in Latin America. The US is aiming to raise the self-sufficiency rate of steel (73%) to 80%, but the demand is likely to increase for the time being. In the end, if the US imposes additional tariffs on imported steel, it means that Mexican steel exports to the US are soaring, and Mexico is likely to import from Korea and other countries to fill the scarce steel demand. There is also the possibility that Mexico will gain brokerage profits between Korea and the United States. "Last year, Mexico imported about 350,000 tons of steel pipe and tube products (HS code 7304) from around the world, and about 260 importers imported about 350 foreign companies I am doing business. "
Meanwhile, according to the Steel Association, exports of US steel pipes, which were 1.1 million tons in 2015, increased by 80.9 % to 1.99 million tons last year. The shale gas boom and the increase in US mining due to rising oil prices are major factors
By Park Jung Il comja77@