South Korea extends anti-dumping duty on China’s stainless steel sheet and coil, tax rate up to 25.82 percent

The Korea Trade Commission (KTC) announced today that it has decided to continue to impose anti-dumping duties on stainless steel plate and coil (Stainless Steel Coil/Sheet) originating in mainland China, with the duty rate remaining at 6.08% to 25.82% and the implementation period extended to May 2030. The move is aimed at protecting South Korea’s domestic steel industry from low-priced imports, but may also exacerbate trade tensions between China and South Korea.

Policy Background and Adjustments

– Review of the original measure: South Korea has imposed anti-dumping duties on Chinese stainless steel sheets and coils since January 2024, which was originally scheduled to expire in 2029, but the KTC decided to extend it for one year after review and maintain the original duty rate structure.

– Basis of investigation: Korea’s Ministry of Industry, Trade and Resources (MITR) claimed that Chinese products are still entering the Korean market at “unfairly low prices”, causing sustained damage to local companies such as POSCO.

Tax Breakdown:

– TISCO (TISCO): 7.17 percent

– Jiangsu Delong Nickel (DLN): 25.82 percent

– Other Chinese companies: 19.87% on average

Market Impact Analysis

1. China’s exports are under pressure: China’s stainless steel exports to South Korea in 2024 fell 12%, the extension of the tax will further weaken the price competitiveness, some companies may turn to Southeast Asia, the Middle East market.

2. South Korea’s industry benefits: POSCO and other local steel mills are expected to expand market share, but the downstream manufacturing industry (such as automobiles, home appliances) may face upward pressure on raw material costs.

3. Adjustment of supply chain: more Chinese enterprises may accelerate their layout in Indonesia, Vietnam and other RCEP member countries to avoid tariffs through “third country re-export”.

China’s reaction and countermeasures

– Official response: China’s Ministry of Commerce criticized South Korea’s “abuse of trade remedy measures” and warned that it would take “necessary countermeasures” and would not rule out filing a lawsuit with the WTO.

– Enterprise action:

– Headline companies such as TISCO and Baosteel plan to increase the proportion of high-end stainless steel products (e.g. automotive steel) exported.

– Some small and medium-sized manufacturers to explore long-term price agreements with South Korean buyers to share the cost of tariffs.

International economic and trade environment linkage

– Escalation of global trade barriers: In recent years, the EU, India and Turkey have imposed tariffs on Chinese stainless steel, and South Korea’s move further highlights the spread of trade protectionism

– China-South Korea relationship variables: Despite close cooperation in the semiconductor and new energy sectors, friction in traditional industries such as steel and chemicals continues, which may affect the deepening of bilateral FTA negotiations.