[THE INVESTOR] The anti-dumping tariff levied on POSCO’s exports to the US will hurt it, but the company’s profitability will not suffer significantly, Hana Financial Investment said on Aug. 8.
The US government on Aug. 5 decided to levy 3.89 percent anti-dumping tariff, and 57.04 percent countervailing duty on POSCO’s hot-rolled plates.
Hana Financial Investment said that the tariff will damage POSCO’s price competitiveness, and that should the company’s hot-rolled plate exports be halted, POSCO’s annual sales will fall 480 billion won (US$432.33 million) on an annual basis. In its report, the brokerage projected that the steelmaker’s annual operating profit will be cut by up to 60 billion won.
In comparison, the steelmaker posted sales of 58.19 trillion won and operating profit of 2.41 trillion won for 2015.
However, POSCO’s hot-rolled plate exports to the US is unlikely to be halted completely as 70 percent of the shipment is managed by USS-POSCO Industries, the report said.
By Choi He-suk (
cheesuk@heraldcorp.com)
