POSCO Applies for Extension of Anti-Dumping on Chinese Stainless Steel "Considering Hot-Rolled Complaint"

"Low-price competition persists... Damage continues"
Sunset review application submitted to government

POSCO has officially requested the government to extend the anti-dumping duties on Chinese stainless steel, which are set to expire this September. This is due to the continued presence of low-priced Chinese imports, but customer companies are opposing the move.

A POSCO official stated on the 14th, "We submitted the application for the sunset review of the anti-dumping duties on stainless steel to the government yesterday."

POSCO had previously requested the imposition of anti-dumping duties on Chinese stainless steel in June 2020. The company claimed that Chinese steel was entering the domestic market at prices lower than normal value, causing damage due to decreased sales volume, and they believe the situation has not changed. Currently, the Korean government imposes anti-dumping duties of up to 24.82% on Chinese stainless steel.

With POSCO requesting the extension of anti-dumping duties, related ministries such as the Ministry of Economy and Finance and the Ministry of Trade, Industry and Energy will decide whether to conduct a review. If a review is initiated, the Ministry of Trade, Industry and Energy will conduct an on-site inspection abroad and investigate the likelihood of dumping recurrence before finalizing the dumping margin. The review period is six months, with a possible extension of four months. Assuming the review starts in May, the Trade Commission will make the final decision in November, six months later, or in March next year, ten months later.

POSCO’s application for the anti-dumping extension has caused unrest in the domestic steel industry. Customer companies are opposing it due to concerns over rising costs. An industry insider said, "Stainless steel hot-rolled products are a POSCO monopoly item," adding, "If the anti-dumping regulation is extended, domestic small and medium-sized companies that have no choice but to use POSCO materials will lose purchasing decision rights and be forced to rely on the sole supplier." POSCO stated a general position, saying, "We will actively pursue mid- to long-term mutual growth."

POSCO is also considering imposing anti-dumping duties on Chinese hot-rolled products imported at low prices. A company official said, "We are continuing to review the possibility of filing an anti-dumping petition on Chinese hot-rolled products," adding, "After reporting to the new chairman, internal decision-making will follow." According to statistics from the Korea Iron & Steel Association, imports of Chinese hot-rolled products reached 1.79 million tons last year, a 26% increase from the previous year. Imported hot-rolled steel sheets are 5-10% cheaper than domestic products.