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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] The South Korean government has decided to impose a provisional anti-dumping tariff of up to 38% on Chinese steel plates. This measure aims to protect the domestic steel industry from damages caused by China’s low-price competition.
At its 457th meeting held on the 20th, the Korea Trade Commission (KTC) under the Ministry of Trade, Industry and Energy announced that a preliminary investigation had confirmed dumping activities involving Chinese-made "carbon steel and other alloy steel hot-rolled steel plates (hereinafter referred to as steel plates)."
The commission concluded that these practices had caused substantial harm to the domestic industry. To prevent further damage during the investigation period, the KTC recommended that the Ministry of Economy and Finance impose provisional anti-dumping tariffs ranging from 27.91% to 38.02%.
This measure follows a complaint filed in July last year by Hyundai Steel, which claimed it had suffered losses due to low-priced steel plate exports from Chinese companies. Steel plates are steel sheets with a thickness of 6mm or more, primarily used in shipbuilding and construction. The domestic market for steel plates is estimated to be worth approximately KRW 8 trillion. This action is expected to have various effects on domestic steelmakers as well as shipbuilding and construction companies that rely on steel plates.
Currently, South Korea’s major steel plate manufacturers include POSCO, Hyundai Steel, and Dongkuk Steel. These companies are expected to benefit from increased market share and improved profitability. Notably, Hyundai Steel, which led the anti-dumping petition, reportedly derives about 15% of its revenue from steel plates. On the other hand, shipbuilders may face increased production costs due to rising raw material prices.
The South Korean steel industry has long expressed concerns that low-priced Chinese exports have made it difficult to maintain normal business operations. According to the Korea Iron & Steel Association, South Korea imported 8.77 million tons of steel products from China last year, marking the highest level in seven years since 2017, when imports reached 11.53 million tons.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
