Trade commission recommends 27.9~38% antidumping tariffs on Chinese thick steel plates

The Korea Trade Commission on Thursday made a preliminary decision to impose antidumping tariffs on Chinese thick steel plates.

The watchdog will ask the finance ministry to impose a duty of up to 38%.

Lee Seung-jae explains why.

Back in July of last year, Hyundai Steel filed a complaint with the government against low-priced Chinese thick steel plates.

Three months later the Korea Trade Commission launched an investigation into the case.

The nation's trade watchdog on Thursday made a preliminary decision to impose antidumping tariffs on thick steel plates being imported from China, after identifying possible damage to the domestic industry.

In its latest recommendation, the KTC will ask the Ministry of Economy and Finance to impose an anti-dumping duty of between 27-point-9-1 percent and 38-point-0-2 percent.

The final decision on the levies is expected to be announced five months from now.

The latest recommendation by the KTC comes amid the Trump administration's decision to impose 25-percent tariffs on all steel and aluminum imports starting next month.

Economists say the higher tariff on steel and aluminum imports to the U.S. will lead to Chinese steel products being flooded into other regions, such as Europe and Southeast Asia, leading South Korean steelmakers to face tougher price competition.

Experts also say the domestic steel industry has been hit hard due to oversupply from China, and a slowdown in domestic demand.

While the domestic demand for thick plates fell in 2023,.. the proportion of thick plates being imported from China has increased.

Last year alone, Chinese imports accounted for 17 percent of all thick steel plate purchases in the country.

The domestic thick plate market is estimated to be around eight trillion won, or over 5-point-5 billion U.S. dollars.

Lee Seung-jae, Arirang News.