South Korea initiates an anti-dumping investigation into HRC from China and Japan
Steel NewsDate: 11-03-2025 by: Nhu Quynh
On February 28, 2025, the South Korean Ministry of Trade, Industry and Energy (MOTIE) decided to initiate an anti-dumping investigation into HRC imported from China and Japan. This decision was made based on a petition from domestic steel mills.
For more information about the incident, follow the article below by MRS Group.
Steel imports from China and Japan are under investigation
Details of the incident
Plaintiff: Hyundai Steel Co., Ltd
Defendant:
Japan: JFE Shoji Corporation, Nippon Steel Trading Corporation, Sumitomo Corporation Global Metals Co., Ltd., Dongkuk Corporation, Seah Japan Co,. Ltd, Young Steel Co,.Ltd.
China: Benxi Iron and Steel Group International Economic and Trading Co,. Ltd., Dalian Woo Ho Hongkong International Ltd., Howa Trading Co,. Ltd., Sharpmap International Hongkong Co,. Ltđ, and Sino Commodities International Pte,. Ltd.
Items under investigation: Hot-rolled coil
HS code: The products in question fall under the Harmonized Tariff Schedule of Korea numbers HSK: 7208101000, 7208109000, 7208251000, 7208259000, 7208261000, 7208269000, 7208271000, 7208279000, 7208361000, 7208369000, 7208371000, 7208379000, 7208381000, 7208389000, 7208391000, 7208399000, 7208400000, 7208531000, 7208539000, 7208541000, 7208549000, 7208900000, 7211130000, 7211141000, 7211149000, 7211191000, 7211199000, 7225301000, 7225309010, 7225309091, 7225309092, 7225401000, 7225309099, 7225409092, 7226200000, 7226911000, 7226912000 và 7226919000.
The plaintiff in the case is Hyundai Steel Co,.Ltd
Why does Korea impose tariffs on Japan and China?
South Korea decided to investigate and possibly impose anti-dumping duties on HRC imported from Japan and China for the following main reasons:
Dumping damages the domestic steel industry
In the petition, Hyundai Steel claimed that hot-rolled coil from Japan and China was priced 10-30% lower than the prices of Hyundai Steel's and POSCO's own products. This puts pressure on prices and profits at domestic manufacturing enterprises.
Protect domestic industry
The steel industry is a strategic industry in Korea, contributing greatly to the economy and employment. Importing cheap steel in large quantities could make domestic producers unable to compete, leading to a decline in production. Specifically, according to information from the Korea Steel Association, from January 2024 to November 2024, Korea imported 3.43 million tons HRC, of which China was 1.53 million tons and Japan was 1.77 million tons, accounting for a total of 96.2% of total imports.
Increased inventory and decreased profits
Cheap steel from China and Japan is flooding the Korean market, causing domestic inventories to rise. This reduces revenue and forces businesses to reduce prices, directly affecting profit margins.
Korea's steel industry is under threat
What opportunities are there for Vietnam's steel industry?
South Korea's investigation and the possible imposition of anti-dumping duties on HRC from Japan and China could open up many opportunities for the Vietnam steel industry.
Increase steel exports to South Korea
If anti-dumping duties are imposed, steel from China and Japan will become pricier in South Korea. This is an opportunity for Vietnamese steel enterprises to increase exports to this market with more competitive price advantages. Steel products that can be concentrated include hot-rolled coil, cold rolled coil, and galvanized steel coil.
Expanding market share in Southeast Asia
China may increase exports to Southeast Asian nations as a result of restrictions in South Korea. If Vietnam maintains and expands trade defense measures such as the recently applied anti-dumping duty, domestic enterprises can gain an advantage at home and in the region.
Vietnam may increase exports to South Korea as China and Japan face tariffs
Opportunities to increase domestic supply chains
If it reduces its dependence on imported steel, the Vietnam steel industry can expand its domestic supply chain, from raw materials to finished products. This trait also helps reduce the risk of trade defense measures from abroad.
Vietnam can take advantage of opportunities to boost exports hot-rolled coil to the Korean market. However, it also comes with significant challenges:
Price competition: This is not only an opportunity for Vietnam but also for other countries in the region. Countries with low production costs will have a more competitive price advantage.
Quality requirements: Korea and developed countries require high-quality standards, requiring Vietnam to invest more heavily in production technology.
Sources of raw materials: Vietnam's steel production still relies heavily on imported materials, which puts pressure on costs.
The article on MRS Group has provided you with the latest information about the case of Korea conducting an anti-dumping duty investigation against China and Japan. Stay tuned to MRS for the latest updates on the incident.
Write a comment