[Special Stock] Samil Gains Attention as POSCO Steel Product Logistics Highlighted Amid Reduced Chinese Steel Supply

[Asia Economy Reporter Minwoo Lee] Samil's stock price is on the rise. As the price competitiveness of Chinese steel products declines, the domestic steel industry is expected to gain a positive spillover effect, highlighting the news that Samil is responsible for the logistics of POSCO's steel products.

As of 10 a.m. on the 4th, Samil's stock price recorded 3,960 won, up 20% from the previous day. Investor sentiment appears to have concentrated as it is expected to benefit from the anticipated improvement in POSCO's steel market conditions.

Earlier, on the 29th of last month, the Chinese State Council Tariff Commission announced that starting this month, the export rebate tax applied to 146 steel product items including hot-rolled, thick plates, wire rods, rebar, color steel, and STS will be adjusted from the previous 13% to 0%. It is expected that the export rebate tax rate will also be lowered for other steel products such as cold-rolled and galvanized steel in the future.

The export rebate tax is a system where Chinese steel companies receive a refund of the value-added tax equivalent, called the value-added tax (VAT), when exporting products overseas. As domestic steel demand in China surged with economic recovery, the abolition of the export rebate tax is interpreted as a policy to redirect steel products from exports to the domestic market. Therefore, as the price of Chinese steel products rises, domestic steel products are expected to gain relative price competitiveness.

Founded in 1965, Samil is a logistics partner of POSCO, responsible for the storage and land transportation of steel products.