South Korean Steelmakers Scramble Amid U.S. Tariff Pressure

Published 2 hours agoPKX

South Korean Steelmakers Scramble Amid U.S. Tariff Pressure

South Korean steel companies are navigating a challenging landscape following the United States' imposition of a 25% tariff on steel imports. Major firms like POSCO and Hyundai Steel have been significantly affected, prompting these companies to seek alternative markets and invest in technological advancements to counteract the lost revenue potential from the U.S. market.

POSCO Holdings reported a first-quarter operating profit of around 570 billion won, a slight 1.7% decline from the previous year. However, other estimates suggest a sharper drop of up to 14.3% to approximately 604.3 billion won, attributable to rising raw material costs and global market challenges. Hyundai Steel faces similar difficulties, with its operating profit forecasted to plummet by 66% to 113.6 billion won, as highlighted by Business Korea.

Faced with these hurdles, South Korean steelmakers are turning to innovation, adopting AI and IoT technologies to enhance efficiency and cut costs. POSCO is advancing its smart factory initiatives, while Hyundai Steel delves into hydrogen-based steelmaking. Despite the current trials, the sector remains hopeful for a positive shift, buoyed by global economic improvements and signs of recovery in China's economy.

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South Korean Steelmakers Scramble Amid U.S. Tariff Pressure

South Korean Steelmakers Scramble Amid U.S. Tariff Pressure

South Korean steel companies are navigating a challenging landscape following the United States' imposition of a 25% tariff on steel imports. Major firms like POSCO and Hyundai Steel have been significantly affected, prompting these companies to seek alternative markets and invest in technological advancements to counteract the lost revenue potential from the U.S. market. POSCO Holdings reported a first-quarter operating profit of around 570 billion won, a slight 1.7% decline from the previous year. However, other estimates suggest a sharper drop of up to 14.3% to approximately 604.3 billion won, attributable to rising raw material costs and global market challenges. Hyundai Steel faces similar difficulties, with its operating profit forecasted to plummet by 66% to 113.6 billion won, as highlighted by Business Korea. Faced with these hurdles, South Korean steelmakers are turning to innovation, adopting AI and IoT technologies to enhance efficiency and cut costs. POSCO is advancing its smart factory initiatives, while Hyundai Steel delves into hydrogen-based steelmaking. Despite the current trials, the sector remains hopeful for a positive shift, buoyed by global economic improvements and signs of recovery in China's economy.

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