Korean steel stocks battered by worsening earnings and grim outlook from global slowdown did not get relief from the preliminary U.S. pardoning of antidumping levies on Korean cold-rolled steel imports.

Shares of top Posco closed 0.45 percent lower at 220,000 won while those of Hyundai Steel Co. 0.9 percent down at 31,650 won, Dongbu Steel Co. 1.4 percent down at 7,890 won. SeAH Steel Cop ended 0.5 rppercent up at 62,300 won.

Stock prices were not lifted by the overnight U.S. Department of Commerce’s preliminary decision exempting Korean steelmakers from its anti-dumping duties and lowering tariffs on steel pipes for oil well, as negative outlook outweighed the positive news.

On Wednesday, local time, the U.S. Department of Commerce announced its second preliminary decision on Korean-made cold-rolled steel products, six months after its first that gave an anti-dumping duty of 36.59 percent on Hyundai Steel, 2.68 percent on Posco, 0.57 percent on Dongbu Steel, and 0.57 percent on Dongkuk Steel Mill Co. Anti-dumping duties were lifted this time.

For countervailing duties, Hyundai Steel’s cold-rolled steel went down from 0.58 percent to 0.54 percent while Posco, Dongbu Steel, and Dongkuk Steel were set at 0.59 percent.

Cold-rolled steel sheets are produced by pressing hot-rolled steel sheets in room temperature with precision machinery to make them thinner. They are used mainly in manufacturing automobiles, home appliances, and steel pipes.

Under adverse facts available (AFA) provision, the U.S. Department of Commerce decided to impose high tariffs on Korean-made cold-rolled steel but follow-up investigations have led the department to lower rates. The Commerce Department uses AFA to arbitrarily calculate high tariffs when it judges companies subject to anti-dumping and countervailing duty investigations are seen as insufficiently cooperating with inquiries such as submission of documents requested by the U.S. government.

The industry will actively respond ahead of the final decision expected in May, next year.

The U.S. department, meanwhile, also decided to lower anti-dumping tariffs on oil country tubular goods (OCTG) in its fourth preliminary decision for most Korean manufacturers except for SeAH Steel.

Tariff on Hyundai Steel that stood at 24.49 percent in the previous third decision was lowered to 0.77 percent while that of Nexteel Co.’s from 32.24 percent to 13.16 percent, and Husteel Co. from 24.49 percent to 13.16 percent.

SeAH Steel, which accounts for the largest OCTG exports, meanwhile, saw tariff increase from 16.73 percent to 17.04 percent.

OCTGs are used in collecting crude oil and shale gas. Korean exports to the U.S. have been on a rise, leading the U.S. government to contain growing presence in the industry.

By Pulse

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