11,024.33 TRY BIST 100 BIST 100
40.55 TRY Interest Interest
85.89 USD Fossil Oil Fossil Oil
31.06 USD Silver Silver
4.49 USD Copper Copper
107.83 USD Iron Ore Iron Ore
382.00 USD Shipbreaking Scrap Shipbreaking Scrap
2,553.39 TRY Gold (gr) Gold (gr)

South Korean steel producers are planning to establish factories in the US

South Korean steel giants are aiming to take an eco-friendly step in the US market.

South Korean steel producers are planning to establish factories in the US

In order to cope with challenging conditions such as high US tariffs, stringent emission regulations, and intense price competition from China, they are considering the possibility of setting up steel factories with electric furnaces.

Hyundai Steel is at the forefront of this trend. Although a final decision has not been made yet, the newly formed green steel task force team is exploring the potential of establishing a presence in the world's largest steel market. This move is groundbreaking considering that Korean companies are generally reliant on blast furnaces.

The attractiveness of the US market is undeniable. Especially with the potential for Trump to win the upcoming elections, the expectation of increased tariffs on Chinese imports could provide a significant advantage to Korean producers. Additionally, electric furnaces, which melt scrap metal with electricity and emit lower carbon dioxide emissions compared to traditional blast furnaces, offer a more cost-effective option. This aligns well with South Korea's stricter environmental regulations.

However, there are some concerns regarding quality. Steel produced from electric furnaces, while environmentally friendly, may contain more impurities compared to those produced from iron ore. This could limit its use, especially in advanced technology products like automotive steel sheets. Companies like POSCO and Hyundai are aiming to overcome this challenge by combining molten iron from blast furnaces with melted steel scrap.

On the other hand, Japanese Nippon Steel is pursuing a different strategy. Instead of building new facilities, they prefer to acquire US Steel, the world's third-largest steel producer, for $14.1 billion. This move underscores the urgency for Asian steel producers to enter the US market due to the continued increase in China's steel exports and the flooding of global markets with cheap steel.


No comment yet.

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In
SteelRadar Insight - Sayı 1 (Haziran 2024)

Most read news

Russian steel production decreased by 4% in June

Thursday, July 11, 2024

Cargo handled at Turkish ports increased

Friday, July 12, 2024

AISI reports decline in steel imports for June 2024

Friday, July 12, 2024

Chinese scrap market follows a volatile trend

Friday, July 12, 2024

Iron ore prices fluctuate in India

Friday, July 12, 2024
Follow List
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.

There are no news categories you follow
Edit Notification Preferences
E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now