South Korea's export surge reignites AD debate

In the first half of 2024, South Korea's hot-rolled plate exports to Europe reached 330,000 tons, up by a third compared to the same period last year.

Last week, South Korean suppliers offered S275 grade products to South European buyers at EUR 540-550 CFR per ton, securing multiple deals at these levels. These low prices have put significant pressure on European producers to lower their offers, despite higher production costs. The price difference between South Korean imports and domestic offers creates an arbitrage opportunity of around EUR 90, while domestic prices for S275 grades in Italy currently stand at EUR 650-680.

Some European producers have expressed concern about the influx of cheap imports. A European manufacturer has complained to authorities, demanding an investigation into allegations of dumping from South Korea, India, and Indonesia. Traders are also calling for action, warning that the aggressive imports are hurting local markets.

Pressure to investigate dumping practices in Europe could extend to the UK. Rising imports, particularly from South Korea, have put pressure on Liberty Steel’s Scottish plant, which has reportedly reduced operations and laid off some of its workforce due to financial difficulties.