The Trade Commission of the Ministry of Trade, Industry and Energy of the Republic of Korea (MOTIE) announced on February 20 that it has decided to impose provisional antidumping duties on thick steel plates imported from China, with the tariff rate ranging from 27.91 percent to 38.02 percent. The Tariff Numbers of the Republic of Korea (Harmonized Tariff Code of the Republic of Korea) for the products in question are 7219.21.1010, 7219.21.1090, 7219.21.9000, 7219.22.1010, 7219.22.1090 and 7219.22.9000. As previously reported in January, the commission had suggested that the ministry of economy and finance should impose 21.62 percent antidumping duty on the products in question for each country. The latest antidumping duties will take effect as soon as they are approved by South Korea’s Ministry of Economy and Finance.
The provisional antidumping duties are 27.91 percent for China's Baowu Steel, 29.62 percent for Jiangsu Province-based Shagang Group, 38.02 percent for Hunan-Province-based Xiangtan Iron and Steel and Fujian Province-based Xiamen ITG Holding Group Co., Ltd. (ITG Holding), and 31.69 percent for other steel suppliers. This preliminary ruling will become the case involving the largest amount of money in the history of South Korea's similar rulings.
According to the previous agreement between China and South Korea, China's steel products exported to South Korea, including cold rolled steel coils, stainless steel hot rolled steel plates and thick plates were subject to zero tariffs.
In 2024, China exported 8.188 million mt of finished steel to South Korea, which was the second largest export destination for Chinese steel products, second only to Vietnam in terms of export volume. It is expected that South Korea’s measure will have a great impact on China's steel exports.
Thick steel plates are important raw materials for shipbuilding and high-end machinery manufacturing, while South Korea 's shipbuilding industry has a global market share of more than 30 percent. The antidumping duties on the products from other countries will likely raise the production costs of companies, such as Hyundai Heavy Industries, weakening their competitiveness in the international market.