A 3 Trillion KRW Construction Materials Market
Encroached by Low-Priced Chinese Products
Joint Response from Industry Leaders Including Dongkuk and SeAH
Dongkuk Steel Group’s plating and color steel sheet specialist, Dongkuk CM, has decided to file an anti-dumping (AD) petition against Chinese-made color steel sheets and plated steel sheets for construction use.
On the 27th, Dongkuk CM announced that due to the indiscriminate influx of low-priced Chinese plated and color steel sheets into the domestic market, which hinders the development of domestic companies striving for premiumization and differentiation, and because it distorts domestic market prices and threatens public housing safety with substandard products, it has decided to join forces with industry peers to pursue the petition.
The uses of plated and color steel sheets for construction are diverse. Low-priced materials are used as single-color sandwich panels for factories and warehouses, while high-priced materials, equipped with design and functionality, are used as roofing, interior walls, exterior walls, and signage materials. The domestic market size was about 2.8 million tons annually as of last year, equivalent to approximately 3 trillion KRW. Among these, imports account for 1 million tons, with Chinese products making up 90% of that.
Korea leads the world market in premiumization of plated and color steel sheets. ‘Luxteel’ is a representative example. Domestically, Dongkuk CM, SeAH CM, and KG Steel produce these products. Each company has invested over several years to differentiate by integrating design and technology into steel sheets, adding color and functionality, evolving from mass production of a few types to premium steel companies producing a wide variety of small quantities.
Dongkuk CM analyzed that the domestic market, which should be the foundation for premium plated and color steel sheet manufacturers to grow by competing with foreign steelmakers in the global market, is regressing to the level of low-priced products due to the proliferation of imported Chinese plated and color steel sheets, risking the gradual loss of growth momentum. Therefore, market defense through trade regulations is urgently needed.
In fact, the import volume of Chinese-made plated and color steel sheets for construction increased by 34.2% over the past three years, from 760,000 tons annually to 1.02 million tons, while the unit price dropped by 23.3%, from $952 (KRW 1,365,929) per ton to $730.
Dongkuk CM regards ‘premiumization and differentiation’ as the only survival strategy amid rising global trade barriers in the Trump 2.0 era. After detailed coordination with domestic peers such as SeAH CM, it plans to defend against low-priced Chinese plated and color steel sheets and will expedite the filing of the AD petition to ensure effective regulatory impact by the first half of the year at the latest.
Related industries are concerned that if tariffs are considered on hot-rolled steel sheets, which are expected to be investigated, the volume of goods undergoing minimal plating or coating processing inside China and then disguised as plated or color steel sheets for circumvention exports could surge.
A Dongkuk CM official stated, “It is time for strategic trade responses based on a macro analysis of the steel production structure,” adding, “By applying phased trade regulations starting from final steel products, it is necessary to minimize friction with neighboring countries while promoting the joint survival of the steel industry.”
Meanwhile, Dongkuk CM also announced strong legal action against Chinese-made defective plated and color steel sheets that threaten housing safety. Currently, most Chinese color steel sheets circulating in the market have plating amounts far below the construction law standard of 90g/㎡, at about 60g/㎡, and do not even indicate the manufacturer. Plating thickness is directly related to corrosion and fire safety. Approximately 2.7 million tons have been imported into Korea over the past three years.
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