U.S. lifts anti-dumping duties on Korean-made cold-rolled sheets in final decision

10/07/2020 12:00 - 115 total view

South Korean cold-rolled steel products gained a small relief in the United States with complete removal of antidumping duties.

According to industry sources on Tuesday, the U.S. Department of Commerce made a final determination in its second annual review of the case and upheld previous decision to remove anti-dumping duty on Korean-made cold-rolled steel products.

Cold-rolled steel sheets manufactured by Hyundai Steel Co. and Posco between September 2017 and August 2018, will be exempt from anti-dumping duties. Hyundai Steel shipped 30,000 tons and Posco 40,000 tons during the cited period.

On Wednesday, shares of Hyundai Steel closed 0.94 higher at 21,400 won ($17.89) and Posco up 2.97 percent at 190,500 won. Shares of SeAH Steel gained 5.12 percent to 51,300 won.

Last month, the U.S. commerce department also exempted countervailing duty (CVD) on cold-rolled steel products manufactured by Hyundai Steel. Upon preliminary decision, the U.S. government took into consideration particular market situation (PMS) to set dumping margin but it lowered coverage rate in its final determination. It also did not consider energy costs as subsidy in its final determination for countervailing duty.

The U.S. commerce department, however, imposed 0.59 percent countervailing duty on Posco’s cold-rolled steel sheets.

Industry insiders noted that the latest decision could trigger more shipments of Korean cold-rolled steel to the U.S. but expansion will be limited due to Section 232 of the Trade Expansion Act that provides quota for imports of steel.

Cold-rolled steel is produced by thinning and smoothing the surface of hot-rolled steel with precise machinery at room temperature. It is used to manufacture cars, home appliances, and steel pipes.

The U.S. Department of Commerce also announced final determination in its fourth anti-dumping annual review of oil country tubular goods.

Hyundai Steel has been exempt from anti-dumping duty in the final determination while SeAH Steel 3.96 percent – each lowered from 0.77 percent and 17.04 percent during preliminary decision last year. Hyundai Steel shipped 190,000 tons and SeAH 250,000 tons.

Lower tariff comes as the average sale price in the U.S. has increased and particular market situation application rate has dropped.

An unnamed industry official said that lower duty means less burden and improved export environment. The official, however, noted that overall demand in the U.S. remains weak due to COVID-19.
Source: Pulse