Chinese Steel Imports to South Korea Reach Seven-Year High
[tintuc]
Despite an overall decrease in South Korea's total steel imports, imports of steel products from China have surged to their highest level in seven years, signaling China's growing influence in the Korean steel market.
According to the Korea Iron & Steel Association, South Korea imported 8.77 million tons of Chinese steel in 2024. This is the largest annual volume of Chinese steel imports since 2017, when imports reached 11.53 million tons.
While Chinese steel imports increased, South Korea's overall steel imports contracted by 5.4% year-on-year to 14.69 million tons in 2024, reflecting a slowing domestic economy. Imports from Japan also decreased significantly, falling by 15.7% to 4.72 million tons.
Industry officials attribute the surge in Chinese imports to aggressive pricing strategies, with Chinese steelmakers reportedly dumping products in the Korean market at prices 20% lower for thick plates and 5-10% lower for hot-rolled plates compared to domestic producers like POSCO and Hyundai Steel.
In response to these concerns, Seoul initiated anti-dumping investigations into Chinese and Japanese steelmakers following a complaint filed by Korean companies with the Ministry of Trade, Industry and Energy.
However, implementing effective policy responses is proving challenging. Imposing anti-dumping duties on Japanese hot-rolled steel sheets could trigger retaliatory tariffs from Tokyo, given the significant trade volume of these products between the two countries. South Korea exported approximately 5 trillion won ($3.4 billion) worth of hot-rolled steel plates to Japan in the past year, while importing 1.7 trillion won worth from Japan.
Adding to the pressure on Korean steelmakers are rising raw material prices and a weakening Korean currency. However, Korean steel mills anticipate that China's economic stimulus measures will eventually revitalize domestic demand in China, which could lead to a reduction in Chinese steel exports to South Korea.
[/tintuc]
Despite an overall decrease in South Korea's total steel imports, imports of steel products from China have surged to their highest level in seven years, signaling China's growing influence in the Korean steel market.
According to the Korea Iron & Steel Association, South Korea imported 8.77 million tons of Chinese steel in 2024. This is the largest annual volume of Chinese steel imports since 2017, when imports reached 11.53 million tons.
While Chinese steel imports increased, South Korea's overall steel imports contracted by 5.4% year-on-year to 14.69 million tons in 2024, reflecting a slowing domestic economy. Imports from Japan also decreased significantly, falling by 15.7% to 4.72 million tons.
Industry officials attribute the surge in Chinese imports to aggressive pricing strategies, with Chinese steelmakers reportedly dumping products in the Korean market at prices 20% lower for thick plates and 5-10% lower for hot-rolled plates compared to domestic producers like POSCO and Hyundai Steel.
In response to these concerns, Seoul initiated anti-dumping investigations into Chinese and Japanese steelmakers following a complaint filed by Korean companies with the Ministry of Trade, Industry and Energy.
However, implementing effective policy responses is proving challenging. Imposing anti-dumping duties on Japanese hot-rolled steel sheets could trigger retaliatory tariffs from Tokyo, given the significant trade volume of these products between the two countries. South Korea exported approximately 5 trillion won ($3.4 billion) worth of hot-rolled steel plates to Japan in the past year, while importing 1.7 trillion won worth from Japan.
Adding to the pressure on Korean steelmakers are rising raw material prices and a weakening Korean currency. However, Korean steel mills anticipate that China's economic stimulus measures will eventually revitalize domestic demand in China, which could lead to a reduction in Chinese steel exports to South Korea.
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