SeAH Steel’s U.S. unit seeks OCTG exemption on import quota on Korean steel

[Photo provided by SeAH Steel Corp.]

South Korean steelmaker SeAH Steel Corp.’s U.S. subsidiary has pleaded to the U.S. government for an exception on oil country tubular goods (OCTG) in the quota imposed on Korean steel exports to the United States.

According to industry sources on Sunday, SeAH Steel America on June 11 submitted a request to the Department of Commerce, asking it to allow the company to bring in 135,000 tons of OCTG tubing and casing products from Korea. The item export to the U.S. averaged 7,600 tons from 2015 to 2017.

Seoul and Washington agreed to restrict the import of Korean steel products to the U.S. to 2.63 million tons a year, 70 percent of average Korean steel shipments of 3.83 tons between 2015 and 2017 in return for gaining exemption on Washington’s universal tariffs of 25 percent on steel and 10 percent on aluminum on major steel exporting countries on grounds of protecting national security.

The American entity was established after SeAH Steel acquired a Texas-based mill in 2016 for more than $100 million. The company is not big enough to meet demand amid renewed oil drilling activities and inevitably has to rely on steel imports for the time being, the U.S. entity told the government.

It argued 178 jobs and its expansion plan of $25 million are at stake if production is disrupted due to lack of supplies.

The U.S. government, however, previously said it cannot accept any waiver on items in steel import quotas.

Shares of SeAH Steel closed Monday 0.96 percent higher at 95,000 won.

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