As high tariffs in the United States began to take effect, South Korea's steel exports to the U.S. fell below 200,000 tons for the first time in a year and a half last month. Both export value and volume showed significant declines, increasing tension throughout the industry.
According to the Korea International Trade Association on the 24th, South Korea's steel export value to the U.S. in July was $283.41 million, a decrease of 25.9% compared to the same month last year ($382.55 million). This marks the largest drop in 2 years and 6 months since January 2023, and the lowest level in terms of export value since March 2021.
The volume also decreased by 24.3% year-on-year, to 194,000 tons. This is the lowest level since January 2023 (174,000 tons).
The U.S. imposed a 25% tariff on steel and aluminum products in March, which was raised to 50% starting in June. Nevertheless, South Korea's export volume to the U.S. maintained a level of 240,000 to 250,000 tons until the first half of this year, but a sharp decline was revealed in July.
The domestic steel industry attempted to maintain export volumes by lowering prices, but faced limitations. The export unit price of steel to the U.S. fell annually from $1,915 per ton in 2022 to $1,651 in 2023 and $1,476 in 2024, further decreasing to $1,396 by July of this year. It temporarily dropped to $1,269 in June.
Additionally, the U.S. Department of Commerce has imposed an additional 50% tariff on 407 derivative products utilizing steel and aluminum, such as refrigerators, transformers, tractors, elevators, and wires and cables, since the 18th, increasing the burden significantly. This measure largely accommodates the items requested by domestic industries in May, raising concerns that the list of tariffed items may increase in the future.
An official from the Ministry of Trade, Industry and Energy noted, 'There is a possibility that the U.S. may add more items to the tariff list at the request of the industry next month,' adding, 'We will strengthen tailored support and consulting to reduce damage.'