Recently, as imports of seamless steel pipes from China surged, industry insiders suspect that the quantities may be an attempt to evade the provisional tariff imposed on Chinese hot-rolled plates (steel plates thicker than 6 mm) during the period of investigation into industrial damage caused by dumping.
Seamless steel pipes, which have no welds and a large circumference, are primarily used for transport pipes or heat exchangers. After importing and cutting seamless steel pipes, they can be flattened for use as hot-rolled plates. Hot-rolled plates are used for constructing ships.
According to the Korea Iron & Steel Association (KISCO) on the 21st, a total of 12,800 tons (t) of seamless steel pipes were imported from China last month, marking a 49% increase compared to the previous month. This figure has also increased by 20% compared to March of last year. The proportion of seamless steel pipes imported into South Korea that are from China is over 90%.
The demand for seamless steel pipes has steadily declined since 2022 due to a slump in the domestic construction industry. While imports exceeded 200,000 tons in 2022, they decreased to 180,000 tons in 2023, and last year, the amount dropped to 140,000 tons. The increase in monthly imports of seamless steel pipes last month was the first rise in seven months since August of last year.
The steel industry believes that the increase in imports of seamless steel pipes is largely due to the impact of the anti-dumping tariffs on Chinese hot-rolled plates. The Ministry of Trade, Industry and Energy announced in February that it would impose tariffs of up to 38% on Chinese hot-rolled plates. Seamless steel pipes are not subject to these tariffs.
Earlier, the Chinese steel industry was criticized for attempting to evade anti-dumping tariffs by exporting colored hot-rolled plates, which are similar but have different HS codes than products that are subject to the tariffs. The government plans to promptly impose tariffs on items that have been slightly altered if they are imported, based on the homogeneity of those items.
Professor Kim Tae-hwang from the Department of International Trade at Myongji University said, "If the volume of circumvention imports like seamless steel pipes or pre-treated hot-rolled plates increases, it could harm competing industries and, if utilized in export products, it could become subject to U.S. sanctions."