South Korean steelmakers would have to pay U.S. Customs an average 28.3 percent when they export corrosion-resistant steel following the U.S. Commerce Department’s decision to uphold local industry complaint and drop bombshell anti-dumping duties on China, India, Italy, South Korea, and Taiwan.

Hyundai Steel was fined 47.8 percent and POSCO 31.7 percent, accused of selling coated steel products at that much of unfair margin in the U.S. market. Dongkuk Steel was levied with 8.75 percent. The final duty rate of 28.3 percent on Korean steelmakers was significantly raised from preliminary dumping finding of up to 3.5 percent.

But compared to their Chinese counterparts, Korean companies were let off lightly. China’s corrosion-resistant steel imports were slapped with duties of up to 450 percent, replacing preliminary rate of 256 percent issued late last year.

Washington said of 700,000 tons worth the steel product exceeding demand last year, 430 million tons had been produced from China.

Korea is the third largest exporter of corrosion-resistant steel coated or plated with corrosion or heat-resistant metal to extend the service life of steel to the United States, having shipped 594,000 tons worth last year, following China’s 705,600 tons and Taiwan’s 632,000 tons.

Hyundai Steel and Dongkuk Steel each export about 100,000 tons worth and POSCO of 50,000 tons a year. Hyundai Steel said it may have to revise its export line due to the U.S. move.

The finding must be confirmed by United States International Trade Commission (USITC) in July to take effect. The U.S. government has been probing after domestic players accused subsidized imports were being sold at unfairly low prices in the U.S. and has been significantly undercutting competitiveness of U.S. steelmakers from a year ago.

Some believe the trade action would be a boon to Korean companies upon easing in glut as China has more or less received an embargo on exports of the steel product.

The Korean government is mulling policy action as its U.S. counterpart has turned outright protective of local industry. Korean carbon and alloy steel cut-to-length plates are under scrutiny on charges of selling at unfairly low prices benefiting from government subsidies. The decision is due in November. Final anti-dumping ruling on cold-rolled steel is also planned for July.

By Kim Jung-hwan and Yoon Jin-ho

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]