Korea: Hyundai Steel files anti-dumping investigation against Chinese, Japanese HR steel plates

• Co's Q3 sales, operating profit drop 10%, 77% y-o-y respectively,
  
  
• Steel processors oppose move, fear rise in raw material prices
  
  

South Korean steel giant Hyundai Steel has submitted an anti-dumping complaint to the Ministry of Trade, Industry and Energy's Trade Commission, citing significant damage to its business due to the influx of low-priced hot-rolled (HR) steel plates from China and Japan.

The complaint, filed on 19 December, 2024, requests an investigation into the alleged dumping of HR steel plates by Chinese and Japanese manufacturers. This move follows a similar complaint filed by Hyundai Steel in July, which targeted Chinese thick plates.

According to Hyundai Steel, the ongoing influx of cheap imports has exacerbated the company's worsening management situation. The company's third-quarter sales and operating profit declined by 10% and 77%, respectively, compared to the previous year.

Industry leaders, including POSCO and Hyundai Steel, have argued that Chinese steel companies are dumping excess steel products in the Korean market, taking advantage of the sluggish domestic construction economy. Meanwhile, Japanese manufacturers are leveraging the weak yen to export steel products at lower prices.

South Korea's imports of finished flat steel products reached 8.08 million tonnes (mnt) from January-to-November 2024, with hot-rolled coil (HRC) and plates accounting for 4.72 mnt, according to data from BigMint. China and Japan were the largest suppliers, with imports from these countries totalling 5.36 mnt and 2.57 mnt, respectively.

However, mid-sized steelmakers which do post-processing work, such as Dongkuk Steel, SeAH Steel, and KG Steel, are not welcoming the imposition of tariffs on imported hot-rolled steel plates, as this will increase the price of raw materials.

The Trade Commission will review Hyundai Steel's complaint and decide whether to initiate an investigation within two months. If the complaint is upheld, it may lead to the imposition of tariffs on Chinese and Japanese HR steel plates, potentially altering the competitive landscape of the Korean steel market.