South Korean steelmaker Hyundai Steel has signed an agreement with local automotive producer General Motors Korea (GM Korea) to supply approximately 100,000 mt of automotive steel annually as of September this year, according to local media reports. Hyundai Steel will replace China-based Baoshan, which was one of the previous suppliers of GM Korea, and will meet 20 percent of GM Korea’s steel needs.
GM Korea’s decision to replace Baoshan as its supplier is based on the trade tensions between the US and China, believing that this tension will not ease in the short term. The company will continue to receive the remaining 80 percent of the steel from local suppliers such as POSCO.