Korean steel producers Posco and Dongkuk Steel have been cautious about joining Hyundai Steel’s anti-dumping complaint against low-priced thick steel plates from China, according to industry sources, reported by the Korea Times.
The three Korean producers of thick steel plates are split on addressing Chinese imports due to concerns over potential economic retaliation from Beijing. Hyundai Steel recently filed a complaint with the Ministry of Trade, Industry, and Energy, arguing that cheaper Chinese plates are negatively impacting its business. Thick steel plates, over 6 mm thick, are crucial for shipbuilding and construction.
The Korea International Trade Association reports a 15.1pct YoY increase in China’s steel exports in the first four months of this year, despite a 19.4pct drop in export prices. Data from the Korea Iron & Steel Association shows imports of thick plates from China surged 73pct last year and continued to rise by 12pct in the first half of this year.
Posco has distanced itself from Hyundai Steel’s complaint, noting that Hyundai Steel acted independently. A Posco official stated that if asked, the company would respond based on its strategies. Given Posco’s extensive operations in China compared to Hyundai Steel’s focus on exports, Posco is concerned about greater potential impact from any Chinese retaliation.
Dongkuk Steel has remained neutral, as its business is closely tied to China due to its processing of both Korean and Chinese hot-rolled steel to reduce costs.
