The US government’s latest decision to slap a maximum of 50 percent anti-dumping duty on automotive steel imported by Hyundai Steel
is expected to deal a blow to its main clients Hyundai Motor
and Kia Motors
, industry sources said on Sept. 7.
Beginning in July, the US Department of Commerce slapped a 47.8 percent anti-dumping duty on coated steels, 38 percent on cold rolled steels and 13.38 percent on hot rolled steel imported by Hyundai Steel from South Korea, saying the products were sold in the US below fair market value and subsidized by their government.
Hyundai Steel, the steelmaking arm of Hyundai Motor Group, exports 545,000 tons of steel to the US every year. Of the amount, 40 percent is used for automobiles, mostly supplied to its affiliates Hyundai and Kia’s plants in Alabama and Georgia, respectively.
The increased price of steel is expected to hike the cost of production for vehicles.
Hyundai Steel supplies about half the coated steel used by Hyundai and Kia’s US plants. Coated steel, which has the heaviest duties, makes up 80 percent of automotive steel in a car.
Hyundai and Kia haven’t increased the price of their cars. But if the anti-dumping duty is levied for a long period, the carmakers will be left with no choice but to raise the price tag, according to the report.
By Ahn Sung-mi (email@example.com