POSCO Rebuts Japan’s Anti-Dumping Duties

The Korean steel giant POSCO has disputed Japan's preliminary anti-dumping duties imposed on Korean steel products, prompting concerns that the trade conflict between the two nations may extend beyond plated steel sheets to hot-rolled and cold-rolled steel sheets. On August 11, POSCO submitted a rebuttal opinion to Japan's Ministry of Finance, arguing that the imposed tariff rate on Korean hot-dip galvanized steel strips and sheets is excessive.

These products, which are treated with hot-dip galvanizing to prevent rust and are commonly used in housing construction, have an annual export volume from Korea to Japan of 300,000 to 400,000 tons, worth approximately 300 billion won ($212 million). Anti-dumping duties are additional tariffs imposed on foreign goods entering a country to protect domestic markets when those goods are cheaper than the market price and potentially distort the market.

Japan's Ministry of Economy, Trade and Industry and Finance reached a preliminary conclusion on July 30 that Korean and Chinese hot-dip galvanized products are causing damage to the domestic industry due to unfair low-price sales. This led to preliminary tariff rates ranging from 29.2% for POSCO to 38% for other entities, with a blanket rate of 38% applied to all other Korean companies.

The tariffs, set to take effect from August 8 to December 7, will be finalized in December. POSCO claims that the conditions for anti-dumping are unmet, as the export price of hot-dip galvanized steel to Japan is higher than the domestic price. The industry argues that the basis for calculating anti-dumping duties is also unacceptable.

Japanese authorities have been investigating since June whether hot-rolled and cold-rolled steel sheets and strips from Korea, China, and Taiwan are being exported to Japan at unfairly low prices, potentially affecting the steel industry and the political relationship between the two countries.