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Korea's HR Export Quotas to US Expecting to be Fully Used This Year

https://en.steelhome.com [SteelHome] 2019-07-19 14:53:47

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In June, the US Commerce Department lowered the antidumping duties on the Korean hot rolled steel sheet and coils as reflected in the final determinations, and therefore the Korean HR mills are expected to concentrate their efforts to use their export quotas allocated by the Korea Iron and Steel Association which were available from the third quarter onward.

On June 25, the US Commerce Department determined finally the antidumping duties relevant to the first administrative review imposing 10.11 percent on POSCO and 5.44 percent on Hyundai Steel respectively, while all others 7.78 percent ad valorem.

On June 14, the Commerce also made its final decision of countervailing annual review by levies of 0.55 percent on POSCO and 0.58 percent on Hyundai Steel, compared to the original duties ranged 3.89~57.04 percent. The final duties combined with those two unfair trade reviews by the Commerce were finalized at 10.66 percent on POSCO and 6.02 percent on Hyundai Steel respectively, which are assessed to the levels enough to have competitiveness in the US market.

As of the middle of July, the US domestic price of HR moved around $610 a ton, compared to the level of mid-April swung $740 a ton. However, the prices continued to fall over the sixteen weeks past on streak, falling down to the higher end of $500 a ton. The latest level is expected to come back on track recovering $600 a ton level and hiking the hopes for turnup ahead.

Nucor and ArcelorMittal USA in doing so increased their offering prices by $40 a ton between mid-June and early July. Around early next year, the US HR prices will be very likely raised up to $700 a ton, many market experts suggested. World Steel Dynamics, the world famous steel analyzing institute, projected at the recently held conference that the steel prices will show off the booming trends only if the iron ore prices should keep rising, and the trade tensions between the US and China should ease onward as well as the currently pressed needs for steel begin to flash from the bottom.

POSCO has already resumed the negotiations for deals beginning May prior to the Commerce final determinations of the review. Hyundai Steel, likewise, expects to improve its profitability when it comes to the export heading the US market, thanks to the lowering of the duties. Hyundai Steel is expected to mount its new export marketing strategy toward the US.

At present, the Korean HR mills are subject to the export quotas which were fixed at the level of 70 percent from the past there years(2015~2017) export tonnage shipped to the US, totaling 540,000 tons around a year. POSCO is allocated for about 370,000 tons quotas and the remaining for Hyundai Steel and others, while the administering thereof is carried out by the Korea Iron and Steel Association.

Last year, POSCO returned its HR export quotas to US while the association reallocated to Hyundai Steel, consuming only 97.5 percent, or 520,000 tons of the entire HR quotas. Under these conditions, it may be not possible for Korean HR mills to export over 800,000 tons of export quota for a while ahead as far as the Section 232 is valid.

Source: Steel&Metal News
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