South Korea is fully exempt from US tariff treatment, and companies are worried about export quotas.

category:Hot
 South Korea is fully exempt from US tariff treatment, and companies are worried about export quotas.


It is reported that the amendment has agreed to exempt Korean produced steel products from 25% high tariffs, while South Korea needs to control the total amount of steel products exported from the United States to less than 2 million 680 thousand tons (70% of the average export volume from 2015 to 2017). However, the report pointed out that due to the total export volume is limited, a delicate tension between Korean domestic steel enterprises is taking shape. Because the main export products of different iron and steel enterprises are different, which enterprises can get more export quotas will directly determine the sales and performance of the enterprises. Industry news said that the South Korean government has got the equivalent of 111% of the export quota in 2017, but only 51% of the steel pipe products, such as oil well steel tubes, were only given the quota of 51% in the South Korea. That is to say, Korea exported 2 million 30 thousand tons of steel pipe in 2017, and exported only 1 million 40 thousand tons this year. This is a blessing for the POSCO (Pohang iron making company), which has no steel pipe exports for the main export sheet steel products, but the main export steel pipes, such as SeAH and Nexteel, will inevitably be hit. In this case, the recently convened Korea iron and steel pipe agreement also failed to reach the quota allocation agreement of export volume among enterprises. And with the POSCO chairmans power to resign, the president of the iron and Steel Association, which he has also served, will be vacant and lack the leader to coordinate the interests of the industry. Reported that the Korean enterprises in overseas business activities have also been in a state of stagnation. Because the export of steel pipe is often a one-time large-scale large-scale export contract, it is difficult for enterprises to carry out business activities independently before deciding the final quota. The iron and steel enterprise related people said, the domestic enterprises have not reached an agreement on the quota, and in this case, it is possible to sign the export contract, it is likely to be unpaid, so it can not operate. Source: China News Network Editor: Wang Zheng _NN7526