The Ministry of Trade, Industry and Energy has initiated an anti-dumping investigation on Chinese steel plates, following a complaint filed by Hyundai Steel on July 31. The investigation, announced through the official gazette on Oct. 4, aims to determine whether the domestic industry has been harmed by the low-cost export of steel plates by Chinese companies, including Shagang. The preliminary investigation will last for three months before moving to the main investigation and determination process.

Hyundai Steel, one of South Korea's leading steel producers, claims that the influx of cheap Chinese steel plates has caused significant damage to the domestic industry. "We filed an anti-dumping complaint, claiming damage from the low-cost export of steel plates by Chinese companies," a representative from Hyundai Steel stated. Steel plates, which are thick steel sheets with a thickness of 6mm or more, are primarily used in shipbuilding and construction.

The domestic industry has long been vocal about the challenges posed by the low-cost exports of Chinese steel. According to the Korea Iron and Steel Association, imports of Chinese steel products to Korea last year reached 8.73 million tons, marking a 29.2% increase from the previous year. From January to April this year, China's steel exports increased by 15.1% compared to the same period last year, while the export unit price fell by 19.4% during the same period.

Chinese steel companies have been exporting goods at low prices due to a prolonged slump in their domestic real estate market and reduced internal steel demand. The Korea International Trade Association reported that China's net steel exports last year amounted to approximately $34.1 billion, nearing the previous peak of $34.3 billion in 2014.

The global steel industry has been significantly impacted by China's overproduction and subsequent low-cost exports. Countries around the world are responding to this economic disruption. The United States announced in May that it plans to raise tariffs on certain Chinese steel products from the current 0-7.5% to 25% within the year. Similarly, the European Union initiated an anti-dumping investigation on tin-plated steel products in May, and Canada announced a plan to impose a 25% tariff on steel products. Emerging countries such as Mexico and Brazil have also raised tariffs on Chinese steel this year, and countries like Vietnam and Turkey have launched related investigations.

The Ministry of Trade, Industry and Energy's Trade Commission emphasized the importance of this investigation. "We have accepted Hyundai Steel's application and will begin an anti-dumping investigation against Chinese steel plate companies, including Shagang," the commission stated. The outcome of this investigation could lead to significant measures to protect the domestic steel industry from unfair competition.

Source: Business Korea