Posted on 18 Oct 2024
The Korea Trade Commission (KTC), under South Korea's Ministry of Trade, Industry, and Energy, has launched an anti-dumping (AD) investigation into imports of hot rolled carbon or other alloy steel plates originating from China, Mysteel Global has learned.
The investigation, announced through the ministry's official gazette on October 4, aims to determine whether the domestic industry has been harmed by the low-cost export of steel plates by Chinese companies, including Shagang Group, according to Korean sources. The preliminary investigation will last for three months before moving to the main investigation and determination process.
The Commission is acting on a petition filed by South Korea's second largest steel company, Hyundai Steel, in late July claiming that an influx of Chinese steel plates "caused by China's delayed economic recovery and overproduction" had resulted in financial harm to the country's heavy plate producers.
The period of investigation for the dumping assessment is from July 1 2023 to June 30 2024, and for injury assessment is from January 1 2021 to June 30 2024, Mysteel Global understands. The KTC is expected to announce its preliminary findings by the end of December.
The targeted products come under the Harmonized Tariff Schedule of Korea (HSK) codes: 7208.51.1000, 7208.51.9000, 7208.52.1000, 7208.52.9000, 7225.40.9010, 7225.40.9091, and 7225.40.9099.
Product | Year | China exports to | China total exports | Proportion |
7208.51 | 2020 | 0.3 | 70.2 | 0.47 |
2021 | 267.9 | 858.8 | 31.19 | |
2022 | 796.9 | 3,210.4 | 24.82 | |
2023 | 1,297 | 5,069.9 | 25.58 | |
2024 (Jan-Aug) | 885.3 | 3,639.8 | 24.32 | |
7208.52 | 2020 | 0.02 | 47 | 0.04 |
2021 | 19.1 | 281 | 6.81 | |
2022 | 56.9 | 1,071.5 | 5.31 | |
2023 | 111.7 | 1,386.1 | 8.06 | |
2024 (Jan-Aug) | 77 | 1,281.3 | 6.01 | |
7225.40 | 2020 | 112.1 | 3,042.8 | 3.68 |
2021 | 144.1 | 1,843.6 | 7.81 | |
2022 | 23.5 | 501.5 | 4.69 | |
2023 | 24.2 | 678.6 | 3.56 | |
2024 (Jan-Aug) | 19.8 | 444.6 | 4.46 | |
Total | 2020 | 112.5 | 3,160 | 3.56 |
2021 | 431.1 | 2,983.5 | 14.45 | |
2022 | 1,377.5 | 6,642.9 | 20.74 | |
2023 | 1,432.9 | 7,134.7 | 20.08 | |
2024 (Jan-Aug) | 982.1 | 5,365.7 | 18.3 |
Source: General Administration of Customs China
The volume of the targeted China-origin plates in this case is relatively small, indicating limited impact in the short term, a Shanghai-based market analyst noted.
However, South Korea's AD probe has undoubtedly placed more pressure on Chinese steel exports in the long run, she warned, considering the fact that South Korea is a major consumer of Chinese steel products.
Korean business daily, the Maeil Pulse, noted that as this is Korea's first anti-dumping case in the heavy plate sector, both the steel and shipbuilding industries are paying close attention to the decision. It quotes Korean shipbuilding industry sources as saying that the Korea Offshore & Shipbuilding Association (KOSHIPA) recently contacted major domestic shipbuilders individually to assess their reliance on Chinese steel plates and their future import plans. "(KOSHIPA) also closely examined the potential impact if anti-dumping tariffs were imposed," it said.
In 2023, China's steel exports to South Korea jumped by 30.6% on year to reach 8.35 million tonnes, accounting for around 9.3% of China's total steel exports and ranking the second largest importer after Vietnam, data from China's General Administration of Customs showed.
In fact, as the largest consumer of Chinese steel products, Vietnam had in late July also launched AD probe against certain Chinese hot-rolled coils, including the products under custom code 7208, as reported.
Over January-August, a total of 23 trade investigations were initially launched against China-origin steel products, exceeding the total of 15 cases from 2021-2023, according to China Iron and Steel Association.
Source:Mysteel Global
