92% Market Share for Chinese Products... Supply Chain Quality Risks
SeAH Besteel and SeAH Changwon Special Steel announced on August 4 that they have requested the government to initiate an anti-dumping (AD) investigation into Chinese-made special steel bars.
The two companies explained that the indiscriminate influx of low-priced Chinese products poses a serious threat to the domestic special steel bar industry. They stated that they have filed an anti-dumping petition with the Trade Commission in order to protect the industry and secure material sovereignty.
Special steel bars are a technology-intensive material that offers superior strength and lightweight properties compared to ordinary steel. They are widely used in advanced industries such as automobiles, defense, aerospace, heavy equipment, and nuclear power. Although domestic production accounts for only about 5% of total steel output, special steel bars have become an essential core material across various industries.
According to the Korea Iron & Steel Association, domestic imports of special steel bars reached approximately 750,000 tons last year, of which 670,000 tons, or 92%, were from China. While imports from China increased by about 50% in two years?from 450,000 tons in 2022?the import price per ton dropped by 24%, intensifying price distortions. As a result, SeAH Changwon Special Steel's operating profit plummeted by 91%, from 125.7 billion won in 2022 to 11.4 billion won last year.
The industry believes that the damage will not be limited to special steel manufacturers. Since it is difficult to visually verify the quality of special steel bars and because uniformity and cleanliness are critical, quality risks could spread throughout the supply chain. There is particular concern that small and medium-sized parts and equipment companies, which have difficulty managing material traceability, are highly likely to be directly affected.
A representative from SeAH Besteel Holdings stated, "Recently, as major countries such as the United States, Europe, and India have strengthened anti-dumping measures against Chinese special steel bar products, the volume of special steel bars flowing into Korea is expected to increase further." He added, "We hope that minimum protective measures for the special steel bar industry, which is a core material for national strategic industries such as defense, aerospace, and aviation, will help secure material sovereignty and fundamentally enhance the competitiveness of Korea's material, parts, and equipment industries."
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