[Special Report] Steel Stocks Surge on China's 38% Tariff Ruling on Thick Plates

The Trade Commission of the Ministry of Trade, Industry and Energy has announced a preliminary ruling to impose anti-dumping duties of up to 38% on Chinese hot-rolled steel plates, a type of steel product, causing steel stocks to surge across the board.

As of 9:20 a.m. on the 21st, POSCO Steelion is trading at 42,650 KRW, up 8,550 KRW (25.07%) from the previous trading day.

Other steel stocks are also showing strong performance, including POSCO Holdings (5.21%), Hyundai Steel (6.26%), Dongkuk Steel (13.27%), SeAH Steel (5.22%), and Moonbae Steel (19.56%). SeAH Steel even reached an intraday high of 163,500 KRW, marking a 52-week record high.

This reflects market expectations following the Trade Commission of the Ministry of Trade, Industry and Energy's decision the previous day to impose anti-dumping duties ranging from 27.91% to 38.02% on Chinese hot-rolled steel plates. The duties are expected to be higher than previously anticipated by the industry. If imposed, the tariffs could raise domestic steel prices and expand sales volume.

Baek Je-seung, a researcher at Samsung Securities, explained, "The three domestic steelmakers producing hot-rolled plates (POSCO Holdings, Hyundai Steel, Dongkuk Steel) can expect an increase in hot-rolled plate prices due to the rise in import prices of Chinese hot-rolled plates." He added, "Assuming hot-rolled plate prices rise to about half of the preliminary anti-dumping duty rate of 33%, POSCO Holdings and Hyundai Steel could see their consolidated operating profits increase by 13% and 31%, respectively, this year."

This content was produced with the assistance of AI translation services.