[Featured Stocks] Small and Mid-Cap Steel Stocks Rise on Expectations of Resumption of Korean Steel Exports to the U.S.

[Asia Economy Reporter Hyunseok Yoo] Steel stocks are on the rise. The expectation that export routes to the United States may open seems to be influencing stock prices.

On the 7th, at 9:21 AM, Munbae Steel was traded at 5,030 KRW, up 17.11% (735 KRW) compared to the previous trading day.

Gyeongnam Steel, NI Steel, and Buguk Steel are also showing strong gains.

According to the Federation of Korean Industries and the industry, a 'Trade Security Act' has recently been proposed in the U.S. Congress to amend Section 232 of the Trade Expansion Act. The bill, primarily introduced by Republican Representative Rob Portman, includes participation from both Republican and Democratic lawmakers.

It is known that there is criticism within the United States that Section 232 of the Trade Expansion Act is increasing damage to American industries and damaging relationships with traditional allies. Both the Republican and Democratic parties in the U.S. agree on the need to amend Section 232, making it highly likely to pass through Congress.

Section 232 of the Trade Expansion Act allows for urgent import restrictions or the imposition of high tariffs if imported foreign products are judged to threaten U.S. national security. In 2018, under Section 232, the U.S. administration implemented a quota system limiting imports of steel and aluminum produced in countries including Korea, Brazil, and Argentina.

The related industry expects that if the bill is amended, the quota system on imported steel and aluminum implemented under Section 232 is likely to be withdrawn.