steel

Dec. 21 (Asia Today) — South Korea’s industry ministry said Sunday it has raised concerns with Canada over strengthened tariff-rate quota measures on steel set to take effect Dec. 26 and asked Ottawa to consider steps including an exemption or expanded quota for South Korea.

A tariff-rate quota (TRQ) is a trade system under which a limited volume of steel imports can enter Canada at a lower or zero tariff, while shipments exceeding that quota face much higher duties. Under Canada’s revised measures, the amount of South Korean steel that can enter Canada at the lower tariff rate will be reduced, and shipments above that limit would face much higher tariffs.

The Ministry of Trade, Industry and Energy said Trade Negotiations Director General Yeo Han-gu met Canadian Minister of International Trade Maninder Sidhu and Canadian Deputy Minister of Foreign Affairs Ali Essassi in Toronto on Dec. 18 local time and conveyed the position of South Korean industry on the measures.

Canada plans to lower the TRQ utilization rate for free trade agreement partners including South Korea from 100% to 75% and for non-FTA countries from 50% to 20%, the ministry said. Imports exceeding the quota would face a 50% tariff and a new 25% tariff would be applied to certain steel derivative products, according to the ministry.

The ministry said Yeo traveled to Canada one week after a phone call with Sidhu on Dec. 11 to hold detailed discussions. It said he asked Canada to take favorable measures for South Korea, citing large-scale investments by South Korean companies in Canada including battery makers and cooperation potential in sectors such as steel, electric vehicles, batteries, energy and critical minerals.

Yeo also said some steel items, including pipelines used in Canada’s oilsands crude production, are difficult to produce domestically and are largely supplied through imports, including from South Korea. Tightening TRQ measures on South Korean steel could affect both South Korean exporters and Canadian industry, he said, according to the ministry.

The ministry said Yeo and Sidhu agreed to establish a new strategic sector dialogue channel between trade ministers under the Korea-Canada free trade agreement, which marks its 10th anniversary this year. They also agreed to set up a hotline for discussions on issues including steel, electric vehicles, batteries, energy and critical minerals, the ministry said.

Sidhu proposed using Canada’s duty drawback system, which the ministry said remains in operation through the end of January 2026 for certain steel items not produced domestically. The ministry said South Korea plans to continue consultations on steel TRQs through high-level and working-level channels.

The ministry said Yeo also met South Korean companies operating in the Toronto area in sectors including steel, autos, home appliances and minerals to hear concerns about trade uncertainty. It said he visited a battery plant backed by LG Energy Solution in Windsor on Dec. 19 and toured the facilities.

The ministry said Yeo later held a meeting in Detroit with South Korean auto parts companies and reviewed issues including Section 232 tariffs on automobiles, Mexico’s announced tariff increases on non-FTA countries and trends related to USMCA revisions. It said he also met potential foreign investors in the auto parts sector to discuss investment opportunities tied to South Korea’s smart factory and manufacturing AI capabilities.

Yeo said shifting trade conditions across the United States, Canada and Mexico pose challenges for South Korean firms operating locally, but also create opportunities tied to changes in North American supply chains, the ministry said.

– Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Published on
09/12/2025 – 13:58 GMT+1

German manufacturer Thyssenkrupp saw its share price slide on Tuesday as it predicted a heavy loss for the current financial year.

As of around 1.30pm Frankfurt, shares had dropped 8.85%, paring more dramatic losses seen earlier in the day.

The steelmaker and engineering firm said it expects negative free cash flow between €300mn and €600mn in its fiscal year that ends on 30 September 2026. That’s before mergers and acquisitions.

Thyssenkrupp also said it expects to make a loss of between €400mn and €800mn in the current fiscal year.

“Our forecast takes account of the persistently challenging market conditions and of the efficiency and restructuring measures in our segments,” said Dr. Axel Hamann, chief financial officer of Thyssenkrupp.

“The determined implementation of our efficiency and cost-cutting programs in all segments is crucial for our earnings development.”

Hamann added that the company had met its financial targets for the year just ended, despite challenging market conditions.

Thyssenkrupp generated positive free cash flow of €363mn during this period, significantly above the prior year’s loss of €110mn. Sales came to €32.8bn, in line with expectations but marking a 6% year-on-year drop.

In the year ahead, Thyssenkrupp predicts restructuring costs at €350mn as it seeks to boost its long-term profitability.

Last week, Thyssenkrupp’s steel unit said it would start implementing job cuts after agreeing a long-awaited deal with unions. Under the terms of the agreement, the firm will eliminate 11,000 posts at its steel plants, amounting to 40% of the workforce there. Steel production will be cut by as much as 2.8 mn tonnes, a roughly 25% drop.

Thyssenkrupp has become a symbol of Germany’s ailing manufacturing industry, hit by Europe’s energy price spike and competition from cheaper Asian competitors. Lacklustre market demand, linked to weak post-pandemic growth in Europe, has also shrunk margins — with carmakers notably reducing their purchases of steel and automotive parts.

Once a powerhouse with divisions spanning from engineering to elevators and defence, Thyssenkrupp is now looking to spin off its flailing arms into separate businesses.

Indian group Jindal Steel is currently mulling a takeover of Thyssenkrupp’s steel unit, replacing contender Daniel Křetínský — a Czech billionaire who stepped back from a potential deal earlier this year. Křetínský returned the 20% stake in the steel unit he had already bought and abandoned plans to raise the holding to 50%. One key priority for the steel unit is decarbonisation, with Thyssenkrupp already investing in low-carbon manufacturing methods.

Thyssenkrupp also managed to offload its marine division TKMS earlier this year, listing it on the Frankfurt Stock Exchange.