South Korea’s steel industry is facing growing pressure after the European Union decided to cut in half the quota for tariff-free steel imports from the country. The EU’s move, intended to protect its own producers from what it considers unfair trade practices, poses a serious challenge for Korean steelmakers, threatening to reduce export volumes, shrink profit margins, and heighten uncertainty about future demand. The South Korean government has begun exploring ways to mitigate the impact, including diplomatic engagement with EU authorities, adjustments to trade policies, and new support measures for the domestic steel sector. Seoul is emphasizing the importance of maintaining stable supply chains and building on long-standing trade ties with Europe, hoping to secure more favorable conditions or possible exemptions from the new restrictions. For Korean steel producers, the decision comes at a particularly difficult time. Global demand remains sluggish, production costs continue to rise, and companies are under increasing pressure to decarbonize their operations. The EU’s tighter quota adds another layer of strain, forcing firms to reconsider their export strategies. Many may need to redirect output toward domestic or alternative overseas markets, potentially facing lower prices and higher logistical costs. The EU’s quota reduction therefore deepens the challenges confronting Korea’s steel sector, pushing both industry and government to coordinate a stronger response to protect competitiveness and sustain access to key international markets.   (ICE SEOUL)

Fonte notizia: The Korea Herald