South Korea plans to impose anti-dumping duties of up to 38% on Chinese hot-rolled steel plates, marking a sharp escalation in trade tensions between the two Asian economic powerhouses.
The tariffs, which exceed market expectations of 25%, follow a four-month preliminary investigation sparked by a complaint from Hyundai Steel Co. in July 2024. The Trade Commission under Korea’s Ministry of Trade, Industry and Energy found substantial evidence that Chinese exporters were undercutting domestic producers.
Chinese thick plate imports surged to a record 1.17 million tons in 2024, more than triple the 320,000 tons recorded in 2021, according to the Korea Iron & Steel Association. Meanwhile, domestic shipbuilding plate sales fell 4.7% to 3.23 million tons last year, despite strong demand from the shipbuilding sector.
The move could trigger retaliation from Beijing and potentially strain broader trade relations. Japanese steel industry officials have also warned of possible countermeasures if Seoul proceeds with similar investigations into their products.
Korean shipbuilders, who rely on steel plates for about 20% of vessel costs, have increasingly turned to cheaper Chinese imports to maintain competitiveness. POSCO Holdings Inc. and Hyundai Steel, which together supply over 8 million tons of thick plates annually, have been grappling with pressure from Chinese imports and oversupply stemming from China’s property sector slowdown.
The provisional duties, ranging from 27.91% to 38.02%, are expected to take effect next month after review by the finance ministry. The trade commission also announced separate anti-dumping tariffs of up to 25.04% on packaging materials from China, Indonesia and Taiwan.
