April 26, 2024

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[THE INVESTOR] The US unit of Korean steelmaker SeAH has asked Washington for a waiver from Section 232 tariffs on imports of steel and aluminum, citing the need to import product to meet market demand, sources said June 17.

The Houston-based company, which was acquired by SeAH for over US$100 million in 2016, claimed it can locally only make three types of products and cannot meet the requirements of its clients without imports of oil country tubular goods, or OCTG.

OCTG is a product used primarily by the oil and gas industries in drilling and extraction operations for lining the casing of oil wells, as well as for the tubing that delivers oil and gas to the surface.

SeAH asked the US for an exemption for 135,000 tons of various types of oil well tubing and casing that are in high demand in the North American market.

SeAH‘s request came as the US government begun to receive an exclusions submission forms from US consumers of steel products who seek an exemption from the tariff if domestic production is insufficient to satisfy domestic consumption or specific national security needs otherwise require an exclusion.

The company said there is “growing demand for such products in the US amid a rise in oil drilling and that failure to meet the demand could result in missed opportunities.”

The request said the company had planned to invest an additional US$25 million, but due to the quota imposed, it may not be able to do so while an overall reduction in business jeopardizes the jobs at its plant.

Korea and the US reached an agreement that limited Seoul‘s steel exports to 2.68 million tons per year in exchange for granting exemptions to stiff import duties. The quota amounts to 70 percent of average of steel exports to the US over the last three years.

By Park Han-na and newswires (hnpark@heraldcorp.com)