Chinese metallurgists may avoid South Korean duties on I-beams

Seven Chinese metallurgists will be able to avoid anti-dumping duties from South Korea after the official Seoul accepted their proposal to increase the price of I-beams shipped to that country. Similar actions in Asia and Europe are intended to curb the rise in exports of cheaper steel products from China, as the world's largest steelmaker struggles with slowing domestic demand by oversaturation of overseas exports.

The South Korean Trade Commission has accepted a proposal from seven Chinese metallurgists that would set a minimum export price for I-beams, mainly used in construction, nearly 24 percent higher than their average prices in the last quarter of 2014. If the decision can receive final approval from the South Korean Ministry of Finance, then seven large Chinese manufacturers, including Hebei Jinxi Iron and Steel Group, will be exempted from anti-dumping duties on I-beams.

In December 2014, the Commerce Commission set preliminary anti-dumping duties of 17.69 percent to 32.72 percent on Chinese imports of I-beams, which were introduced to offset the damage to the domestic steel industry from flooding the South Korean market with cheap Chinese products. The South Korean H-beam market is represented by 23 percent at a cost of 520 billion won ($ 475.49 million). In South Korea, there is an increase in demand for these products in residential and industrial construction.

The South Korean Trade Commission launched an investigation into Chinese dumping cases in 2013 after petitions were filed by South Korean manufacturers such as Hyundai Steel and Dongkuk Steel. However, the Trade Commission today accepted an offer from Chinese metallurgists that will ensure the minimum export price for I-beams is about 24 percent higher than their average prices. This step will reduce the negative impact on local metallurgists.