Japan curbs HRC exports to South Korea

The decision of South Korea's Ministry of Economy and Finance (MOEF) announced Monday that it had imposed provisional AD duties on imports of Chinese and Japanese carbon and alloy HRC for four months from September 1, as Mysteel Global reported, was merely an escalation of the process begun late last year.

On December 19 2024, Korea's second-largest steelmaker, Hyundai Steel, filed a petition claiming that China- and Japan-origin HRC imports priced 10-30% below its own had damaged its business, as had soaring tonnage. During January and November last year, Korea had imported 3.43 million tonnes of HRC, with Chinese and Japanese products accounting for nearly 97% of the total, as BusinessKorea reported.

In March this year, the Korea Trade Commission (KTC) agreed to take up the case – another warning shot for exporters – and in July, it recommended to the Ministry of Economy and Finance that provisional ADs be imposed while its probe continued. "We have determined that interim measures are necessary to prevent further damage to domestic industries that may occur during the main investigation period," the KTC explained.

The KTC had recommended that preliminary penalties of between 31.58% and 33.57% be imposed on Japanese HRC and duties of between 28.16% and 33.1% be applied to Chinese coils, as Mysteel Global reported.  Monday's MOEF announcement was confirmation that it had accepted the KTC's recommendation and applied the temporary penalties.

Though the Japanese mills curbed their Korea-bound HRC shipments during January-July, those in July alone rose by 5.5% from June to 81,095 tonnes (though these were half the July 2024 total). The increase suggests that in July the Japanese mills – and their Korean customers – had been expecting the KTC to announce it was seeking provisional duties and so rushed to conclude deals.  

In Monday's announcement, the MOEF said the duties would be in place till January 1 next year, which also suggests it expects to have the KTC's formal finding and recommendation in the case before year's end.

Meanwhile, the JISF data show that the Japanese mills have been busy seeking other buyers of their HRC. In July, Japan exported 1.03 million tonnes of HRC worldwide, higher by 24% from June, which took January-July global exports to 6.606 million tonnes, lower by only 5% from the first seven months of last year.

The Customs statistics also show that exports to Thailand in July reached 156,400 tonnes, up 34% from June, while shipments to new destinations soared. Those to Bangladesh reached 66,000 tonnes, for example, also up 34% from June, while those to the UAE were 83% higher at 97,000 tonnes.

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

Edited by Alyssa Ren, rentingting@mysteel.com