Impact of U.S. tariffs on Asian steelmakers manageable: Moody's

Updated 2018-03-02 23:10:05 Xinhua

The United States' plan to impose tariffs on steel imports is credit negative for Moody's-rated Asian steel producers, but the impact will not materialize, said Moody's Investors Service Friday.

"The impact of the tariff would be manageable for the Asian steel sector and Moody's-rated steelmakers in the region, because exports to the U.S. account for relatively small portions of their total steel production," the rating agency's analyst Sean Hwang said in a statement.

Moody's also pointed out that China's direct steel exports to the U.S. represented only 1 percent of total exports or 0.1 percent of total steel production during the first nine months of 2017.

Besides, the reliance by Chinese steel companies on exports decreased substantially in 2017, according to Moody's.

In contrast, the South Korean steel sector demonstrates a relatively high exposure to U.S. exports, given its position as the third largest steel exporting country to the U.S. during the first nine months of 2017.

However, even in the case of South Korea, Moody's said, steel exports to the U.S. are mostly focused on pipes and tubes, in which the Moody's-rated South Korean steelmakers show little exposure to.

In a separate statement, Moody's managing director Marie Diron said that Canada and Bahrain would be most affected based on their size of aluminum and steel exports to the U.S., if the tariffs also apply to them.

U.S. president Donald Trump had on Thursday indicated that he would approve a 25-percent tariff on steel imports starting the following week. His decision was based on the U.S. Commerce Department's Section 232 investigation of the ramifications of metal imports on national security.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58May 27 2018 05:31:56

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16May 27 2018 05:31:56

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18May 27 2018 05:31:56

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords