Turkiye's ADs on South Korean plate a boon for China?

Following an investigation begun in April 2024, the ministry announced on September 1 that Korean-origin plate had been dumped in the local market and had caused damage to domestic production. Imports from POSCO will attract duties of 4.34%, those from Hyundai Steel 4.37%, and those from other Korean shippers including Dongkuk Steel Mill 9.4%, it said.

The targeted items are under HS codes 7208.51, 7208.52, 7225.99, 7211.13.00.11.00, 7211.13.00.19.00; 7208.90.80, 7211.14.00.21.11, 7211.14.00.21.12, 7211.14.00.29.11, 7211.14.00.29.12, 7211.14.00.31.00, 7211.14.00.39.00, 7211.19.00.21.00, 7211.19.00.29.00, 7225.40.40.00.00, and 7225.40.60.00.00, according to the General Directorate of Imports.

The dumping determination period spanned January 1, 2023 to December 31 that year, while the damage determination period spanned January 1, 2021 to December 31, 2023, the statement said. The duties will be in place for five years beginning August 30.

The case had been brought by Turkiye's largest steelmaker, Eregli Demir ve Çelik Fabrikalari T.A.S. which had claimed that its business had been damaged by surging imports of Korean-origin plate. South Korea was the largest exporter of heavy plates to Turkiye in 2023, reportedly supplying over 287,000 tonnes.

The dumping probe did not apparently dissuade Korean exporters this year, with Korea Iron and Steel Association data showing that between January and July, Korea shipped 184,333 tonnes of heavy plates to Turkiye's market, higher by 31% from the first seven months of last year and valued at $116.44 million, up by 11%.

In Korea, heavy plate producers and traders suggest that the trade ministry's decision might actually complicate conditions in Turkiye by creating an opening for Chinese heavy plate exports there.

"The industry believes that the tariff rate is relatively low, so exports of Korean products to Turkiye will continue," industry daily Steel& Metal News observed. "However, some raise the possibility that rather than shaking the flow of Korean exports in Turkiye's market, Chinese-made plates will expand their market share," it suggested. It calculated that the dumping duties will add around $30-150/tonne to the landed cost of Korean plates.

Indeed, South Korea's plate producers are well acquainted with the business drive of their Chinese competitors.

In response to a suit brought by Hyundai, South Korea's trade ministry has sought to have anti-dumping duties of between 27.91% and 34.1% imposed on China-origin hot-rolled carbon or other alloy steel plate from Chinese steelmakers including Baoshan Steel and Jiangsu Shagang Steel, as Mysteel Global has reported.

However, late last month news emerged that nine of the targeted Chinese shippers had proposed a deal with Seoul whereby the duties would be waived in return for minimum price and maximum tonnage commitments, also as reported.

Written by Russ McCulloch, russ.mcculloch@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com