S Korean plate sales into EU revive AD probe talks

A recent spree of South Korean hot-rolled plate (HRP) sales into Europe have revived talks around the possibility of a dumping probe.

Over the first six months of 2024 South Korean plate arrivals into Europe rose by a third compared with the same period last year to 330,000t.

Last week, South Korea offered S275 grades at €540-550/t cfr south EU concluding a string of deals in the process, likely at the figures indicated above.

These prices have put local producers under pressure to reduce their own offers despite significant cost pressures.

When comparing southern European prices to South Korean imports an arbitrage of about €90/t is available on domestic offers. At the time of writing, local prices in Italy for S275 grades have settled at €650-680/t ex-works.

One mill source told Argus it has already filed a complaint to the relevant authorities over dumping activity from Asia. "It makes sense to investigate India and Indonesia, combined with Korea. These are the three most aggressive sources right now," the same market participant said.

This investigation follows protectionist trends and should include South Korea, Indonesia and India, one trader added.

Similar views were echoed in Italy, where two sources commented any investigation should begin promptly, given the damage imports have caused.

A probe launched by the EU would likely put UK authorities under pressure to enact a similar measure. "The UK has to act in the same way as EU. Korean prices cannot continue," one mill agent said.

Aggressive importation, especially from Asia, has also hampered cash-strapped Liberty Steel's re-rolling facility in Scotland. Sources close to the company told Argus the reroller remains off the market, and has furloughed part of its workforce.

"Structural challenges in the UK steel industry, including consistently high energy costs and cut-price imports from countries such as South Korea with less stringent environmental standards, means Liberty Steel UK has for some time been operating some plants intermittently with agreed short-time working arrangements," Liberty said.

UK Steel, which represents UK steelmakers, noted "concern" about "underpriced" Korean plate imports, though it said it has not submitted a petition as of yet.

By Carlo Da Cas