Steel Shortage and Soaring Prices in U.S. Prompt Hyundai Steel to Consider Korean H-Beams

SpaceX Project Driving Steel Demand Higher

Securing Structural Steel Locally in the US Becoming Difficult

Some Lead Times Reach 40 to 50 Weeks

Importing with 50% Tariff Under Consideration

There is ongoing discussion about using Korean-made H-beams (H-section steel) in the electric furnace steel plant that Hyundai Steel is constructing in Louisiana, USA. The reason for this is the strained local steel supply due to the surge in data center and large-scale factory construction, as well as the planned construction of a massive space base by SpaceX, which has caused prices to soar. As the burden of higher prices and longer lead times grows, the idea of importing Korean-made H-beams—even with a 50% tariff—has emerged as an alternative.

On the 4th, key figures attending the groundbreaking ceremony of the HPLS (HYUNDAI-POSCO Louisiana Steel) electric arc furnace steel plant held in Louisiana, USA, took the first shovel of soil to mark the start of the factory construction. Hyundai Steel

According to the industry on September 11, Hyundai Steel, POSCO, and other related parties are considering jointly sourcing construction H-beams for the HPLS (HYUNDAI-POSCO Louisiana Steel) electric furnace steel plant being built in Donaldsonville, Louisiana from both the local US market and Korea.

The construction of HPLS is being managed by Hyundai Engineering & Construction. Although the basic plan is to procure major building materials locally in the United States, the limited supply of structural steel has turned price and lead time into critical variables.

According to a market report released this summer by the US construction company Skanska, demand for structural steel remains high due to increasing construction of data centers and large factories, and in some markets, lead times have reached 40 to 50 weeks. Structural steel prices in the United States are also on the rise.

In addition, last month SpaceX announced that it would invest $100 billion to build the world's largest space base, "Starbase Louisiana," in Vermilion Parish, Louisiana. Construction is scheduled to begin in 2027, with plans to establish a total of 10 launch pads across five complexes. As such large-scale steel-intensive projects continue, local demand for steel is expected to increase further.

The United States currently imposes a 50% tariff on steel products under Section 232 of the Trade Expansion Act. While local procurement is prioritized, if it becomes difficult to secure the necessary volume in time, the import of Korean steel is being considered as an alternative, especially in light of construction schedules and related factors.

An official from Hyundai Steel stated, "Basically, it is right to prioritize sourcing competitively priced products locally in the US," but added, "If local procurement proves difficult, we cannot rule out the possibility of bringing in domestic steel." He further explained, "Not only price, but also conditions such as delivery time must be taken into account."

Lee Jaeyoon, Senior Research Fellow at the Korea Institute for Industrial Economics & Trade, commented, "If Hyundai Steel cannot source locally, importing from Korea could be an option. In the past, during the application of Section 232 tariffs, there were cases where tariff exemptions were granted for steel products that were necessary for US production but insufficiently supplied locally."

On September 4, Hyundai Steel held a groundbreaking ceremony for the HPLS electric furnace steel plant in Donaldsonville. The HPLS project involves a $5.8 billion investment and aims for an annual production capacity of 2.7 million tons, with mass production targeted for 2029. Hyundai Steel holds a 50% stake, POSCO 20%, and Hyundai Motor and Kia each own 15%.

This content was produced with the assistance of AI translation services.