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Korea files anti-dumping claim against China steelmakers

12/06/2014    93

Two Korean steelmakers- Huyndai Steel and Dongkuk Stell Mill- have files an anti- dumping petition against Chinese producers of H- shaped stell, claiming they are exporting their products to Korea at a 20 percent discount to the price in China. 

Two Korean steelmakers ㅡ Hyundai Steel and Dongkuk Steel Mill ㅡ have filed an anti-dumping petition against Chinese producers of H-shaped steel, claiming they are exporting their products to Korea at a 20 percent discount to the price in China. 
The Korea Trade Commission (KTC) will soon start investigating to determine by early next year whether Chinese companies have violated anti-dumping regulations. A ruling against the Chinese companies would pave the way for the Korean government to impose a hefty punitive tariff on the products. 
H-shaped steel is used in the skeleton frameworks of buildings. Chinese H-steel makes up about 22 percent of Korea's 2 trillion won ($2 billion) market. 
The KTC said on Monday that the Korean steelmakers submitted their petition on May 30. 
"China's exports of H-steel at such low prices have pushed Korean steelmakers into trouble," a Korea Iron and Steel Association official said on Monday. 
In early April, Dongkuk Steel President Nam Yun-young said how the issue was handled would "determine the fate of the Korean steel industry." 
"We will join forces with Hyundai Steel to find a breakthrough" Nam was quoted as saying. 
Hyundai Steel Vice President Kim Young-hwan echoed Nam's view in a separate interview in late April, saying his company was preparing to file anti-dumping suit against Chinese H-steel manufacturers. 
Market insiders say the per ton price of Chinese H-steel is set at around 590,000 won, while Korean H-steel, mainly produced by Hyundai and Dongkuk, is around 770,000 won. 
The gap has led to a sharp increase in demand for Chinese H-steel in recent years, they said. 
In 2009, Korea imported 363,000 tons of H-steel from China, according to the Korea Iron and Steel Association. This jumped to 510,000 tons in 2010 and 644,000 tons the following year. 
Last year, 621,000 tons were imported. During the first four months of this year, Korea imported 297,443 tons, up 17.8 percent from the same period last year, according to the association. 
Dongkuk is known to have been hit hardest by the cheap Chinese exports. The company posted 1.491 trillion won in sales, but posted a 1.3 billion won operating loss in the first quarter ㅡ its first operating loss in five quarters. 

The Korea Trade Commission (KTC) will soon start investigating to determine by early next year whether Chinese companies have violated anti-dumping regulations. A ruling against the Chinese companies would pave the way for the Korean government to impose a hefty punitive tariff on the products. 

H-shaped steel is used in the skeleton frameworks of buildings. Chinese H-steel makes up about 22 percent of Korea's 2 trillion won ($2 billion) market. 

The KTC said on Monday that the Korean steelmakers submitted their petition on May 30. 

"China's exports of H-steel at such low prices have pushed Korean steelmakers into trouble," a Korea Iron and Steel Association official said on Monday. 

In early April, Dongkuk Steel President Nam Yun-young said how the issue was handled would "determine the fate of the Korean steel industry." 

"We will join forces with Hyundai Steel to find a breakthrough" Nam was quoted as saying. 

Hyundai Steel Vice President Kim Young-hwan echoed Nam's view in a separate interview in late April, saying his company was preparing to file anti-dumping suit against Chinese H-steel manufacturers. 

Market insiders say the per ton price of Chinese H-steel is set at around 590,000 won, while Korean H-steel, mainly produced by Hyundai and Dongkuk, is around 770,000 won. 

The gap has led to a sharp increase in demand for Chinese H-steel in recent years, they said. 

In 2009, Korea imported 363,000 tons of H-steel from China, according to the Korea Iron and Steel Association. This jumped to 510,000 tons in 2010 and 644,000 tons the following year. 

Last year, 621,000 tons were imported. During the first four months of this year, Korea imported 297,443 tons, up 17.8 percent from the same period last year, according to the association. 

Dongkuk is known to have been hit hardest by the cheap Chinese exports. The company posted 1.491 trillion won in sales, but posted a 1.3 billion won operating loss in the first quarter ㅡ its first operating loss in five quarters. 

Source: Korea Times

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