Dongkuk to file anti-dumping petition vs Chinese color steel imports

Dongkuk Coated Metal Co. and SeAh Steel Corp. are set to file an anti-dumping complaint against Chinese rivals in March as the country plans to impose up to 38% provisional anti-dumping duties on Chinese hot-rolled steel plates starting next month.

Dongkuk Coated Metal (Dongkuk CM), South Korea’s largest color-coated steel producer, said on Thursday it will file an anti-dumping petition against Chinese imports of color steel sheets used in construction to Seoul’s Ministry of Trade, Industry and Energy (MOTIE).

After reviewing the complaint, the MOTIE will decide around May whether to launch an investigation into the anti-dumping allegations.

“The heavy influx of low-cost Chinese coated and color steel sheets is distorting domestic market prices and jeopardizing housing safety with substandard products.” said a Korean steel industry official.

The petition also comes after Seoul recently launched an investigation into China’s alleged dumping of hot-rolled steel sheets, escalating trade tensions between the two countries over steel products.

In January, the country also began slapping a 21.62% tariff on Chinese stainless steel imports.

A color-coated steel sheet is coated with color on cold-rolled steel to achieve the desired patterns and textures.

The domestic architectural color steel market is worth about 3 trillion won ($2.2 billion), or 28 million tons annually as of 2024. Imports account for about one-third, or 1 million tons, with Chinese products making up 90%.

Over the past three years, imports of Chinese architectural color steel sheets have risen by 34.2% from 760,000 tons in 2024 to 1.02 million tons per year in 2022, according to the Korea Iron & Steel Association.

Over the same period, its average unit price has dropped by 23.3% to $730 per ton in South Korea, about 30% cheaper than domestically produced color steel sheets.

In 2024, Dongkuk CM’s operating profit from domestic sales of color steel sheets declined by 24.0% on-year.

Most Chinese-made color steel sheets are thinner than Korean products, leaving them more vulnerable to rust and fire.

Their coating weight is about 60 grams per square meter, falling short of the required weight of 90 grams per square meter under construction law.

INDIRECT IMPORTS

The government's launch of an anti-dumping investigation into Chinese hot-rolled steel sheets has prompted domestic color steelmakers to lodge a complaint against Chinese rivals.

If Seoul restricts hot-rolled steel sheet imports from China, they could circumvent the regulation or tariffs by using color steel products instead.

Minimal processing, such as simple plating or powder coating, could be applied to Chinese hot-rolled steel sheets to make them resemble color-coated steel, industry observers warn.

Write to Jin-Won Kim and Ji-Eun Ha at Jin1@hankyung.com

Yeonhee Kim edited this article.