South Korea’s Latest Anti-Dumping Duty on Chinese Stainless Steel Plates
South Korea has ramped up its efforts to protect its domestic steel sector by imposing provisional anti-dumping duties (AD) on hot-rolled stainless steel plates imported from China. On March 7, 2025, South Korea's Ministry of Economy and Finance announced a 4-month provisional AD duty on specific stainless steel plates under HS codes 7219.21.1010, 7219.21.1090, 7219.21.9000, 7219.22.1010, 7219.22.1090, and 7219.22.9000. These duties were set at 21.62% in response to a petition filed by DK Corp, South Korea’s only producer of stainless steel plates.
Background of the Investigation
The investigation into the potential anti-dumping was launched after DK Corp, which operates a 120,000 metric tons/year plant in Pohang, South Korea, filed a formal complaint in June 2024. The company argued that Chinese stainless steel plates were being sold at unfairly low prices, significantly harming the local market. DK Corp produces stainless steel plates used in sectors like petrochemicals, semiconductors, and nuclear power plants.
The provisional duty is intended to prevent further damage to South Korea’s domestic industry while the investigation continues. South Korea’s Trade Commission concluded that there was sufficient evidence showing that the dumping of Chinese products had adversely affected the competitiveness of the domestic stainless steel plate sector.
Exclusions and Product Scope
The products affected by the provisional anti-dumping duties are hot-rolled stainless steel plates with a thickness of no less than 4.75mm and a width of no less than 600mm. However, the probe excludes certain products such as hot-rolled coils and stainless steel plates with a thickness of 8mm or less.
The investigation period covered by the inquiry spans from January 1, 2023, to December 31, 2023, with the injury assessment period extending from January 1, 2021, to June 30, 2024.
Impact on Chinese Exports to South Korea
The anti-dumping duties are seen as a move to safeguard South Korea’s stainless steel plate industry, which is critical for its high-tech sectors. Despite the 21.62% provisional duty, industry experts believe that the direct impact on Chinese stainless steel exports to South Korea will be limited. This is because the affected products represent only a small fraction of China’s total stainless steel exports to South Korea.
According to China’s General Administration of Customs (GACC), in 2024, China exported 860,000 metric tons of stainless steel plates under the affected HS codes, making up only 2.46% of its total stainless steel exports to South Korea. This suggests that while the ruling may have some effect on certain Chinese producers, it will not drastically impact overall trade flows between the two countries.
Surge in Chinese Exports
In the wake of the anti-dumping investigation, Chinese stainless steel traders have ramped up exports to South Korea, possibly anticipating the imposition of tariffs. Data from Korea Customs Service shows that imports of stainless plates under the relevant HS codes surged to 1,750.7 metric tons in January 2025, more than double the volume seen in both December 2024 (814.7 metric tons) and January 2024 (875.9 metric tons).
This spike in exports is reflective of growing concerns among Chinese traders about the impact of potential tariffs, as the trade protectionism trend intensifies globally. One trader mentioned the challenges posed by tariffs imposed by countries such as the U.S., adding to concerns that other nations may follow suit with similar measures.
Market Sentiment and Global Trade Implications
Despite the limited direct impact of the provisional anti-dumping duties on Chinese exports, there is an undeniable shift in market sentiment. The increasing protectionist measures across the world have caused anxiety among Chinese steel exporters, who are now facing tariffs and trade barriers from multiple fronts.
A global mining executive warned that this growing wave of trade friction could lead to further instability in the global steel market, especially for China, which remains the largest overseas supplier of stainless steel to South Korea. As the world continues to witness escalating trade disputes, China’s steel exports are increasingly vulnerable to additional measures from countries seeking to protect their domestic industries.
What Lies Ahead for Chinese Steel Exports?
With the provisional AD duties expected to remain in place for four months, the steel industry is awaiting the final ruling from South Korea’s Ministry of Economy and Finance. This decision is anticipated within six months of the preliminary findings, in accordance with the usual timeline for anti-dumping investigations. The final ruling will determine whether these provisional duties are extended or revised based on further evidence and assessments.
Key Takeaways:
• South Korea has imposed a 4-month provisional anti-dumping duty of 21.62% on hot-rolled stainless steel plates from China.
• The measure follows an investigation initiated after a petition by DK Corp, South Korea’s sole producer of stainless steel plates.
• The HS codes for the affected products are 7219.21.1010, 7219.21.1090, 7219.21.9000, 7219.22.1010, 7219.22.1090, and 7219.22.9000.
• The products under investigation represent only 2.46% of China’s total stainless steel exports to South Korea.
• Despite the provisional tariffs, the surge in Chinese exports to South Korea in January reflects concerns about further trade protectionism.
• The final ruling is expected within six months from the preliminary determination.
