Seoul: South Korea's trade watchdog has made a preliminary decision to impose antidumping tariffs on Chinese thick steel plates following an investigation into potential damage to the domestic industry. Under the Korea Trade Commission's (KTC) decision, the Ministry of Economy and Finance will be asked to levy antidumping tariffs ranging from 27.91 to 38.02 percent on hot-rolled thick plates imported from China.
According to Yonhap News Agency, the KTC initiated the investigation in October after Hyundai Steel lodged a complaint against the influx of low-priced thick steel plates from China. The recommendation comes at a time when the Korean steel industry is facing heightened challenges, particularly after the U.S. government's announcement of a 25 percent tariff on all steel and aluminum imports starting March 12.
Market analysts have expressed concerns that the new U.S. tariffs could exacerbate existing issues in the local industry, which is already struggling with oversupply and reduced global demand. The potential redirection of Chinese steel products away from the U.S. market to regions such as Europe and Southeast Asia could intensify price competition for South Korean steelmakers.
An official from a Korean steel company, who wished to remain anonymous, commented on the situation, stating that local businesses have been engaged in fierce competition against Chinese firms that have flooded the market with cheap thick steel plates. The official believes the KTC's decision provides an opportunity for local companies to enhance profitability and safeguard the domestic market.
Industry data reveals that the import volume of thick steel plates has surged in recent years, nearly doubling from 1.26 million tons in 2021 to 2.06 million tons last year, while domestic demand for these products has decreased from 8.11 million tons to 7.8 million tons during the same period.
The final determination regarding the antidumping tariffs is expected to be announced in approximately five months. Concurrently, the KTC has resolved to extend existing measures against dumping of flat-rolled stainless steel and oriented polypropylene (OPP) film products from China, Indonesia, and Taiwan, recommending continued price adjustments and imposing antidumping tariffs between 2.5 percent and 25.04 percent on OPP film imports.