South Korea decides to launch anti-dumping investigation on Chinese hot-rolled or medium thick plates

On October 4, 2024, the Korea S890QL1 steel Trade Commission issued a notice (case investigation number 23-2023-8) announcing the initiation of an anti-dumping investigation into hot-rolled carbon or other alloy steel plates originating in China, at the request of South Korean producer, Hyundai Steel Corporation. The products involved are iron or non alloy steel, other alloy steel with a thickness of not less than 4.75 millimeters and a width of not less than 600 millimeters, and hot-rolled steel plates that have not been cold-rolled. This survey covers products under Korean tax codes 7208.51.1000, 7208.51.9000, 7208.52.1000, 7208.52.9000, 7225.40.9010, 7225.40.9091, and 7225.40.9099. According to the announcement, the dumping investigation period is from July 1, 2023 to June 30, 2024, while the injury investigation period is from January 1, 2021 to June 30, 2024.

Hyundai Steel claims in its appeal that the influx of Chinese hot-rolled S890QL1 steel and medium thick plates has caused significant damage to the domestic steel industry in South Korea, with a preliminary estimated dumping margin of 25.89%. The Korea Trade Commission will complete the preliminary ruling within three months from the date of filing, unless there is a special extension, and stakeholders need to complete the registration of their response within three weeks after the announcement is made.

South Korea is an important export S890QL1 steel market for China's medium and thick plates, especially holding a significant share in the Asian market. According to data from the South Korean Customs Service, in the first eight months of 2024, South Korea imported a total of 1.32 million tons of medium and thick plates, of which 63% (827318 tons) came from China. According to data from Chinese customs, from January to August 2024, China's exports of medium and thick plates to South Korea reached 1012746 tons, accounting for 19% of China's total exports of medium and thick plates.

Market participants are concerned that if South Korea imposes anti-dumping duties on China's hot-rolled medium and thick plates, it may have a heavy impact on China's exports of medium and thick plates. Previously, Thailand and Vietnam had launched anti-dumping investigations against China's hot-rolled steel, and now South Korea has followed suit, which may significantly weaken China's hot-rolled steel exports in Asia. As of October 8th, the price of medium thick plates exported from major ports in China is approximately $540-550 per ton, a significant increase from the FOB price of $470-500 per ton on September 24th.

This measure by South Korea will undoubtedly intensify the pressure on China's steel exports in the global market. Mysteel will closely monitor the progress of the investigation and its potential impact on Sino Korean trade in the coming months.