Dongkuk Steel Bypasses U.S. Import Restrictions Through Brazil Joint Venture

Dongkuk Steel Brazil is expected to bypass US protectionist trade policies, as the US government recently decided to restrict steel imports from South Korea this year to 70% of the three-year average and maintain a 100% quota for Brazil.

“South Korean steel companies cannot benefit from the current rise in US steel prices as they have already shipped large quantities of products before the import restrictions were imposed,” an industry source said, adding, “On the other hand, CSP Steel, which was rather sluggish since 2016, currently enjoying US protectionist trade policies. "

According to industry sources, the price per tonne exported from Brazil to the United States rose from $ 465 to $ 576 in December last year and in May this year. This is because US steel prices are rising and the US is tightening its import restrictions.

CSP Steel Mill, a two-year joint venture of Dongkuk Steel in Brazil, is currently capitalizing on the slab price increase. Brazil has traditionally been a very important trading partner for the United States when it comes to supplying iron ore and plate, and the United States has made a decision this time around in that regard. CSP Steel Mill currently exports 10 to 15% of its production to the United States. The stability of the metallurgical plant has improved significantly with the rise in price.