South Korean steelmaker POSCO is reportedly preparing to file an anticircumvention dumping complaint against stainless steel cold rolled coil (CRC) imports from Malaysia, with local media outlet SteelDaily reporting that the application could be submitted during the third quarter of 2026.
Accordingly, POSCO is working closely with the South Korea Trade Commission to finalize the scope of the investigation and supporting evidence, although the exact timing of the filing remains uncertain and could fall in either August or September.
Investigation could lead to retroactive antidumping duties
Anticircumvention investigations differ from conventional antidumping cases because imports arriving after the official launch of an investigation may become subject to retroactive antidumping duties if circumvention is ultimately confirmed.
While the Trade Commission generally takes around one month to decide whether to initiate an investigation after receiving an application, the process can reportedly be completed in as little as one week if the submitted evidence is considered sufficient and an expedited decision is warranted.
POSCO examines Malaysian production and sourcing structure
Malaysian stainless CRC continues to be actively offered to South Korean importers, distributors and end-users despite weak domestic demand, with suppliers emphasizing competitive prices and some buyers reportedly considering new purchase contracts.
POSCO has been reviewing the sourcing of raw materials as well as the production and export structures of Malaysian stainless steel products before submitting its application. The company is reportedly examining whether stainless steel products processed in Malaysia using raw materials originating from countries already subject to South Korea's antidumping measures should also be covered under anticircumvention rules.
South Korea currently imposes antidumping duties on flat-rolled stainless steel products imported from China, Indonesia and Taiwan. It was noted that, beginning this year, the country's anticircumvention framework was expanded to cover not only minor product modifications in the original exporting countries but also processing and assembly operations carried out in third countries.
Importers warned over contractual and financial risks
If the Trade Commission determines that Malaysian products constitute circumvention dumping, the applicable antidumping duty would not be newly calculated for Malaysia. Instead, the existing antidumping duty rate imposed on the country supplying the raw materials would be applied to the imported products. The investigation is expected to assess factors including the origin of raw materials, the extent of processing carried out in Malaysia, the level of value added and changes in export volumes to South Korea following previous antidumping measures.
Importers and end-users have been warned to carefully assess contractual and payment terms when purchasing Malaysian stainless CRC. Even if exporters agree to take back products in the event of an adverse ruling, importers could still face financial losses or disputes related to refunds, freight costs, storage charges and demurrage. Given the uncertainty surrounding the timing of any investigation, companies are advised to consider not only current price competitiveness but also the potential risks associated with customs clearance, shipment schedules and future antidumping duties.
