Steel stocks up as U.S. poised to slap tariff hike on China

2024.05.14 10:37:02 | 2024.05.14 10:37:27

[Graphics by Song Ji-yoon]이미지 확대

[Graphics by Song Ji-yoon]

Korean steel and related stocks surged on Tuesday in anticipation of the forthcoming benefits from The U.S. government’s anticipated tariff hikes on Chinese products.

Histeel Co. stocks traded at 4,640 won ($3.39) as of 9:20 a.m., an 18.37 percent increase from the previous trading day. Other stocks including Bookook Steel, Moonbae Steel Co., and TCC Steel also saw notable gains, with increases of 8.59 percent, 5.18 percent, and 3.51 percent respectively. Aluminum stocks such as Sama Aluminium Co. and Choil Aluminum Co. rose 2.91 percent and 2.06 percent respectively.

During a briefing on Monday (local time), White House National Security Advisor Jake Sullivan hinted at an announcement by U.S. President Joe Biden regarding tariff hikes on Chinese products. There were speculations in U.S. media outlets that new tariffs on Chinese products, particularly in strategically vital sectors such as electric vehicles, batteries, and semiconductors, could be announced as early as Tuesday.

Biden previously criticized China during a meeting with steelworkers in April 2024, attributing China‘s ability to flood global markets with steel products at unfairly low prices to government subsidies and labeling it as “cheating.” He also recommended that the U.S. Trade Representative’s Office (USTR) raise tariffs on Chinese steel and aluminum from 7.5 percent to 25 percent.

Meanwhile, cosmetics company VT Co. also saw its stock price surge on Tuesday, propelled by its record quarterly performance.

VT stocks traded at 25,950 won as of 9:33 a.m., reflecting an 8.13 percent increase from …the previous market close. The stock peaked at 28,600 won during the trading session to hit a new 52-week high.

Following the market close on the preceding day, VT reported a 113 percent year-on-year increase in first-quarter sales to 101.8 billion won, accompanied by a staggering 3,776 percent surge in operating profit to 24 billion won.

Hana Securities adjusted its target price for VT from 30,000 won to 38,000 won, citing robust growth momentum stemming from its exceptional quarterly performance.

“With the record quarterly performance driven by the success of its flagship product, Riddle Shot, VT‘s growth momentum is likely to continue in the second quarter of 2024 with new product launches, including those in Japanese drugstore chains,” Hana Securities Co. analyst Park Eun-jung said.

Park expects the company’s annual operating profit to total 115.7 billion won, up 154 percent year-on-year, and that the firm will see its strongest growth momentum in 2024.

By Pulse

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