【SMM Steel】Unions representing POSCO and Hyundai Steel warned of a structural crisis facing the steel industry in Pohang. The sector is under pressure from global supply chain disruptions, low-priced steel imports, rising carbon transition costs, and increasing industrial electricity prices. These challenges are eroding competitiveness and threatening tens of thousands of jobs. Unions called for urgent action, including lower electricity costs and expanded direct power purchase mechanisms.

【SMM Steel】Fives signed a contract with Hyundai Steel and POSCO to supply coil finishing lines for a new $5.82bn low-carbon steel plant in Louisiana. The facility will produce 2.7 Mt/y, with 70% for auto-grade applications. Hyundai Steel aims to strengthen the local auto steel supply chain in North America. Fives will provide coil handling solutions. The plant deepens its presence in the US auto steel market.

[SMM Steel] Hyundai Steel, POSCO and Fives Group signed a contract for a Louisiana flat steel project focused on automotive-grade production. The $5.82 billion plant will use a DRI-EAF route to produce low-carbon steel, with capacity including 650,000 mt HRC and 2.05 million mt CRC annually, with about 70% dedicated to automotive steel.

【SMM Steel】Hyundai Steel issued FAC to SMS group after upgrading its Dangjin #1 CGL. The two-phase project integrated X-Pact® automation and upgraded hydraulics to improve strip quality and stability. Stage 1 added a new strip washer/dryer. Stage 2 focused on the skin-pass mill for precise flatness. The upgrades reduce downtime and extend equipment life, building on a partnership since 2005.

【SMM Steel】Hyundai Steel began mass-producing low-carbon steel sheets via a hybrid BF-EAF process, cutting CO₂ by ~20% vs conventional BF products. R&D started in 2023 at Dangjin; 25 steel grades certified. Initial supply targets Hyundai, Kia models in Korea and Europe. It's also developing low-carbon heavy plate for offshore wind, eyeing global energy and infrastructure markets.

According to a report by Korea JoongAng Daily, the English edition of South Korea’s JoongAng Ilbo, on June 12, Hyundai Steel, South Korea’s second-largest steel producer, announced that it had temporarily shut down its No. 2 steel mill in Pohang on June 7 due to the prolonged downturn in the industry.

On June 2, the Ministry of Trade, Industry and Energy of the Republic of Korea (ROK) convened an emergency meeting with representatives from the steel and aluminum industries to discuss responses to the US doubling of tariffs on steel and aluminum. According to Yonhap News Agency, industry representatives from POSCO, Hyundai Steel, KG Steel, the Korea Non-Ferrous Metals Association, Novelis Korea, and Lotte Aluminum attended the meeting. The meeting focused on discussing the impact of the US's tariff increase on steel and aluminum on relevant industries in the ROK and subsequent response plans. The Ministry of Trade, Industry and Energy of the ROK stated that it would closely monitor the implementation of the US tariff measures and actively respond within the existing framework of consultations with the US, striving to minimize the impact on domestic industries in the ROK. The US has imposed a 25% tariff on all imported steel and aluminum since March 12. On May 30, US President Trump said that the tariffs on steel and aluminum would be raised to 50% starting from June 4. The US is one of the major export markets for ROK steel. According to data from the Korea International Trade Association, steel products exported to the US accounted for 13.1% of the ROK's total steel exports in 2024.

According to CME's "US Fed Watch": The probability of the US Fed maintaining unchanged interest rates in May is 96.3%, and the probability of a 25 basis point interest rate cut is 3.7%. The probability of the US Fed maintaining unchanged interest rates by June is 22.1%, the cumulative probability of a 25 basis point interest rate cut is 75.0%, and the cumulative probability of a 50 basis point interest rate cut is 2.8%.

POSCO to Participate in Hyundai Steel's $5.8 Billion US Plant Project On April 21, POSCO announced that it had signed a memorandum of understanding with Hyundai Motor Group to participate in the construction of Hyundai Steel's plant in the US and strengthen cooperation in the steel and battery sectors. Last month, Hyundai Steel announced plans to invest $5.8 billion by 2029 to build an integrated steel mill in Louisiana, US, with the goal of commencing operations in the same year.

【Hyundai Steel Plans to Build Steel Plant in the U.S.】Hyundai Steel announced in a regulatory filing that it will jointly invest $5.8 billion with Hyundai Motor Group to construct a steel plant in Louisiana, U.S., with an annual production capacity of 2.7 million tons. This move is part of Hyundai Motor Group's $21 billion investment plan in the United States. On March 25, Hyundai Motor's share price rose by 7.5%, reaching its highest level since late October 2024. Kia's share price also increased by 4.3%, while Hyundai Steel's share price went up by 5.4%.