[Featured Stock] EU Steel Tariffs and Union Wage Negotiations... Weakness in Steel Stocks

[Featured Stock] EU Steel Tariffs and Union Wage Negotiations... Weakness in Steel Stocks

Share prices of steel-related stocks are showing weakness in early trading due to the European Union's (EU) push to raise steel tariffs.

As of 10:30 AM on the KOSPI market today, POSCO Holdings [005490] is trading at 415,000 won, down 2.01%.

The stock started down 1.30%, then turned upward in early trading to reach 426,000 won. However, it has since fluctuated and turned downward, continuing its weakness.

This is in contrast to the KOSPI, which is currently up more than 3%.

Hyundai Steel [004020] is at 39,300 won, down 2.12%. It started down 2.24% and at one point in early trading fell as much as 5.35% to 38,000 won.

The steel sector is currently showing a 2.00% weakness.

On the 19th of last month, local time, the European Parliament finally approved a plan to significantly raise tariffs on steel products from 25% to 50% and halve the duty-free import quota.

Domestic steel companies are already bearing the 50% tariff imposed on imported steel by the administration of former U.S. President Donald Trump.

In addition, POSCO and Hyundai Steel are facing the challenge of labor-management negotiations. Investors appear to be opting to sell amid this period of increased uncertainty.

According to industry sources, POSCO's labor union sent a negotiation proposal to management last month, including a 7.1% increase in basic wages, and it is expected that labor and management will enter full-fledged negotiations as early as the beginning of this month.

Hyundai Steel's labor union is reportedly demanding a 150% increase in performance bonuses compared to last year. Labor and management held their fourth round of negotiations last month, and the next negotiation will be held on the 2nd.