Seoul - In a move to protect its domestic steel industry, South Korea has decided to impose anti-dumping duties on Chinese hot-rolled steel plates. The decision comes as global trade tensions escalate, with the United States also increasing pressure on trade partners.
The Ministry of Trade, Industry and Energy's Trade Commission announced on February 20th that it has preliminarily determined that Chinese hot-rolled steel plates are being dumped in the South Korean market, causing damage to domestic producers. The commission has proposed imposing provisional anti-dumping duties ranging from 27.91% to 38.02%.
The move follows a petition filed by Hyundai Steel in July 2024, alleging that cheap Chinese steel plates were hurting the profitability of domestic companies. Dumping refers to the practice of exporting goods at prices lower than their normal value, allowing importing countries to impose tariffs to offset the difference.
Hot-rolled steel plates are thick steel materials used in shipbuilding and other industries. Last year, South Korea's imports of Chinese hot-rolled steel plates reached a record high of 1,179,328 tons, a 5% increase from the previous year. Chinese steel plates are about 20% cheaper than Korean-made ones in the domestic market.
The anti-dumping duties come as the US is also ramping up its trade protectionism. President Donald Trump has announced that he will impose steel tariffs starting from March 12th, and has hinted at further tariffs on automobiles and semiconductors. These moves are likely to exacerbate global trade tensions and could lead to a surge of cheap Chinese steel products in the South Korean market.
The South Korean government is also considering launching a dumping investigation into Chinese and Japanese hot-rolled steel sheets, following another petition by Hyundai Steel in October 2024.
The anti-dumping duties on Chinese steel plates are expected to provide some relief to the domestic steel industry, which has been struggling with the influx of cheap imports. However, the long-term impact of the measure remains to be seen, especially with the escalating global trade tensions.
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