Korea's KTC starts AD probe into China-origin specialty bars

After a ten-month delay, South Korea's trade regulator, the Korea Trade Commission (KTC), has begun an anti-dumping investigation into imports of Chinese special steel bars. However, Korean sources suggest that the KTC will now move quickly on the probe and could announce preliminary findings by early August.

"While the crisis in the domestic special steel bar industry continues due to the encroachment of low-cost special steel bars made in China, the government has finally taken full-fledged measures," industry daily Steel & Metal News remarked on Friday. "The special steel bar industry is pointing out that this anti-dumping investigation should be used as an opportunity to strengthen certification regulations for Chinese materials, and at the same time restore the domestic special steel bar and rod supply chain," it added.

The KTC, under Korea's Ministry of Trade, Industry & Resources, had announced the launch of its investigation on May 7 targeting items under HSK codes 7214.10.0000, 7214.30.0000, 7214.91.0000, 7214.99.1000, 7214.99.9000, 7215.10.0000, 7215.50.0000, 7215.90.0000, 7228.10.0000, 7228.20.0000, 7228.30.1000, 7228.30.9000, 7228.40.1000, 7228.40.9000, 7228.50.0000 and 7228.60.9000.

The period for the investigation spans January 1 2025 to December 31 2025, while the examination period for domestic industrial damage covers January 1 2023 to December 31 last year. The preliminary investigation period is within three months from the date of publication in the official gazette – meaning August 7 – with the main survey being conducted within three months from the day after the submission of the preliminary investigation results.

The KTC is responding to a complaint filed last August by leading special longs maker SeAH Besteel and subsidiary SeAH Changwon Special Steel, alleging that imports of low-priced special bars were undermining the competitiveness of the domestic industry.

The petitioners had argued that during 2024, Korea's entire specialty steel bar imports totaled 750,000 tonnes, of which those from China accounted for 92% or 670,000 tonnes. Moreover, the import volume from China had surged by 50% in just two years, but the import price had dipped by 24%, they had alleged.

Though the AD petition was filed in early August last year, work on the probe had been delayed until February 27 while additional data from the industry were accumulated. In the meantime, imports of special bars have risen further, according to SM&N. It quotes Korea Iron & Steel Association statistics as showing that during January-March this year, imports of the targeted bars reached 180,598 tonnes, up 3.2% on year, of which those from China accounted for 163,299 tonnes, up 4.1% on year.

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

Edited by Alyssa Ren, rentingting@mysteel.com