[Market Focus] Steel Stocks Surge on Reduced Chinese Output... POSCO International Up 9%

On July 23, domestic steel stocks showed strong performance. This was driven by expectations that the domestic steel industry, which had been suffering from worsening oversupply, would get some relief as steel production in China decreased.

As of 2:27 p.m. that day, POSCO International was trading at 56,000 won, up 4,800 won (9.38%) from the previous trading day.

Across the steel sector, stocks were in the green. Seah Steel Holdings rose by 9.35%, POSCO Steelion by 4.49%, POSCO Holdings by 4.02%, and Hyundai Steel by 2.60%.

According to the steel industry, crude steel production in China, the world's largest steel-producing country, showed a declining trend, recording 92.84 million tons in March, 86.02 million tons in April, and 86.55 million tons in May. Although last month's production figures have not been officially announced yet, it is expected to have decreased, as the Chinese government previously stated it would intervene to reduce excess steel production capacity.

In addition, the settlement of tariff negotiations between the United States and Japan on this day, along with growing expectations for a successful tariff agreement between Korea and the United States, also appeared to boost investor sentiment.

On the same day, U.S. President Donald Trump announced through his social media account that the largest trade deal in history had been completed.

President Trump further stated, "Japan will invest $550 billion in the United States at my direction, and Japan will receive 90% of the profits. Japan will pay a 15% reciprocal tariff to the United States."

Additionally, the two countries agreed to reduce the additional tariff on Japanese automobiles from the originally planned 25% to 12.5%, setting the rate at 15% along with the original rate of 2.5%.