With the provisional anti-dumping tariff on imported hot-rolled plates (thick plates over 6 mm) from China taking effect on the 24th, some sectors of the demand industry have reacted that the tariff imposition is unfair. Some items, such as high-tensile strength hot-rolled plates, are not produced by domestic steelmakers due to low revenue, but they have been designated as items subject to the tariff, resulting in price increases.
The anti-dumping tariff will be imposed from the 24th until Aug. 23 for approximately four months, following the Ministry of Economy and Finance's confirmation of the preliminary determination made by the Ministry of Trade, Industry and Energy in February. The tariff rate ranges from 27.91% to 38.92% by manufacturer.
As a result of the tariff imposition, the distribution price of imported hot-rolled plates from China is expected to exceed that of domestic products. The distribution price of imported general-purpose hot-rolled plates (SS275), which was 800,000 won per ton earlier this year, reached 850,000 won this month. The distribution price of domestic hot-rolled plates is 910,000 won. Since the price difference between imported and domestic general-purpose hot-rolled plates has narrowed, it is not very difficult to substitute them with domestic products; however, high-tensile strength hot-rolled plates are difficult to substitute due to low domestic production.
High-tensile strength hot-rolled plates, used in special machinery, have seen domestic steelmakers withdraw from the market or limit production due to China's low-price offensive, leading many corporations that require them to rely significantly on Chinese imports. While general hot-rolled plates have a yield rate of 85% to 90% compared to raw materials, the yield rate for high-tensile plates is known to be around 75% to 85%.
The distribution price of Chinese high-tensile strength hot-rolled plates Q345 is reported to be 850,000 won per ton. If the tariff is imposed, the price is expected to rise to 1.17 million won, significantly exceeding the domestic price of 990,000 won per ton. According to the Korea Iron and Steel Association, a total of 131,660 tons of special steel hot-rolled plates, including high-tensile strength hot-rolled plates, were produced domestically last year. In contrast, the import volume was 272,672 tons, exceeding domestic production.
The Ministry of Industry plans to assess the industry situation and take action. A ministry official noted, "We plan to hold a public hearing next month to gather opinions from the industry," adding, "If there are requests for exclusion from the demand sector, we will review them."