Hyundai Steel considering first overseas steel mill in US

South Korea's Hyundai Steel is considering establishing a steel mill in the US to supply automakers Hyundai Motor and Kia, the steelmaker said Jan. 8.

"Our company is reviewing various measures to secure sustainable growth and global competitiveness, but nothing has been decided as of now," it said.

Hyundai Steel added that it will make an announcement "when specific details are decided in the future or within one month."

The steelmaker was responding to domestic news reports that it plans to build its first overseas steel mill in New Orleans, Louisiana.

Yonhap News Agency reported Jan. 8 that the steelmaker had discussed an estimated Won 10 trillion ($6.87 billion) investment plan with several US officials, including those from Georgia.

A South Korean trader told S&P Global Commodity Insights that the envisaged steel mill, which could likely be electric arc furnace-based, would manufacture steel sheets for automobiles and supply them to Hyundai Motor and Kia Corp.

In the US, Hyundai Motor operates a 356,000-vehicle-per-year plant in Alabama, while Kia runs a 340,000-vehicle-per-year plant in Georgia.

Hyundai Motor also runs an electric vehicle and battery plant in Georgia, dubbed the Hyundai Motor Group Metaplant America. The plant produces 300,000 EVs per year.

Platts, part of S&P Global Commodity Insights, assessed spot CFR East Asia HMS 1/2 80:20 stable week over week at $341/mt CFR on Dec. 31, with Dangjin as the basis port.