On October 18, 2024, the U.S. Department of Commerce announced its final findings in the administrative review of carbon and alloy steel wire rod imports from South Korea. The review revealed that POSCO and POSCO International Corporation, the sole producers and exporters under scrutiny, had sold these products in the U.S. market at less than normal value during the review period of May 1, 2022, to April 30, 2023. This finding indicates that the imports were likely being sold at prices that undermine the U.S. steel industry, raising concerns about unfair trade practices.
The investigation began following preliminary results published on June 5, 2024. During this process, POSCO requested a public hearing but later withdrew the request, choosing instead to submit a case brief. No other parties engaged in this process, indicating that POSCO was the primary stakeholder in defending its pricing practices. The lack of rebuttal from other interested parties may suggest limited opposition to the findings from the Department of Commerce.
The final determination revealed a weighted-average dumping margin of 10.85% for POSCO and POSCO International Corporation. This figure represents the percentage by which the price of the imported steel wire rod was found to be lower than the fair market value, as defined by U.S. trade law. Such a margin is critical as it will guide the imposition of antidumping duties aimed at leveling the playing field for domestic producers.
Commerce’s review process adheres to the procedures outlined in the Tariff Act of 1930, which mandates that imports sold below fair value can be subject to additional duties. The department's assessment includes rigorous data analysis, and the Issues and Decision Memorandum provides a comprehensive breakdown of methodologies and adjustments made during the review, including corrections in calculations related to indirect selling expenses.
The scope of the order covers certain hot-rolled products of carbon and alloy steel, in coils with a diameter of less than 19.00 mm. This classification is crucial as it identifies specific products affected by the duties and helps clarify which imports will be scrutinized under the antidumping measures. As such, the order serves as a protective measure for U.S. manufacturers against potentially harmful pricing strategies from foreign competitors.
