EU, Japan, and Two Other Countries Launch Steel Anti-Dumping Investigations... South Korea Excluded

Up to 14 Months Duration... Anti-Dumping Duties May Be Imposed During Investigation
Taiwan and Korea Cited as Normal Cases

Steel products piled up outside the POSCO Pohang Steelworks factory in Jecheol-dong, Nam-gu, Pohang-si, Gyeongbuk [Image source=Yonhap News]

The European Union (EU) is conducting an anti-dumping investigation on certain steel products from four countries, including Japan. South Korea has been excluded.

According to the EU Official Journal and major foreign media on the 14th (local time), the European Commission initiated anti-dumping investigation procedures on hot-rolled steel products from Japan, Egypt, India, and Vietnam starting from the 8th.

This investigation follows a petition submitted in June by the European Steel Association (EUROFER), which represents the local industry, requesting the Commission to impose anti-dumping duties on products from these four countries. EUROFER claimed that low-priced hot-rolled steel products from these countries were dumped into the EU market, forcing EU producers into unavoidable price competition.

Hot-rolled steel sheets are used as automotive structural steel, various pipes, and construction materials. After undergoing a cold rolling process (thinning hot-rolled coils at room temperature), they are also used for automotive exterior parts and home appliance materials.

According to EUROFER, as of 2020, products from Japan, Egypt, India, and Vietnam accounted for 12% of the total import market. In the petition, EUROFER cited imports from South Korea and Taiwan as normal cases, stating that even if imports from Taiwan and South Korea increase, their volume is smaller, prices are higher, and there is no evidence of dumping. Taiwan and South Korea hold 3.2% and 2.4% shares of the EU import market, respectively.

The investigation is expected to last up to 14 months. Provisional anti-dumping duties may be imposed even during the investigation. Since South Korean products are excluded from the investigation, their price competitiveness in future exports to Europe may improve.

However, there is a possibility that the number of countries subject to EU investigations may increase. This is because the EU is strengthening various trade measures under the pretext of protecting its domestic industries. The steel sector is considered one of the industries the EU pays particular attention to.