South Korean steel and aluminum stocks surged Thursday morning following U.S. President Joe Biden’s remarks about potentially tripling tariffs on Chinese steel and aluminum.

As of 9:12 a.m., metal stocks were the most traded in the Kospi. Histeel Co. traded at 3,775 won ($2.74), up 29.95 percent and hitting the price limit, POSCO Steeleon Co. rose by 23.23 percent, Choil Aluminum Co. by 13.80 percent, Hanil Iron & Steel Co. by 11.68 percent, Moonbae Steel Co. by 13.80 percent, Namsun Aluminum Co. by 9.65 percent, Sama Aluminium Co. by 9.41 percent, and Bookook Steel Co. by 8.83 percent.

In the Kosdaq market, Dae Dong Steel Co. rose by 22.05 percent, Shin Steel Co. by 21.23 percent, Hanjoo Light Metal Co. by 16.08 percent, and Keum Kang Steel Co. by 15.98 percent.

Biden said on Wednesday (local time) that he recommended that the U.S. Trade Representative’s office raise tariffs on Chinese steel and aluminum products to 25 percent, more than triple the current 7.5 percent rate. But observers expect little impact on Korean companies from the potential tariff plan against Chinese products thanks an annual U.S. export quota of over 2 million tons for Korean steel.

Meanwhile, Korean household product manufacturer Lock & Lock Co. saw its stock price rise on the same day following news of a tender offer for the stock by Affinity Equity Partners.

Lock & Lock traded at 8,680 won as of 9:13 a.m., up 6.11 percent from the previous trading day and hitting 8,720 won during trading hours to place itself within range of the tender offer price.

Affinity announced it will buy 13,141,120 shares of Lock & Lock common stock, 30.33 percent of the total issued shares, at 8,750 won per share through the tender offer starting from Thursday until May 14th, 2024.

Affinity currently has a 69.64 percent stake in Lock & Lock and plans to delist the company after acquiring all remaining shares. It also plans to purchase all subscribed shares regardless of the tender offer rate, with the purchase price, totaling 115 billion won for the public buyout, to be paid in cash.

By Pulse

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]