[Alpha Biz= Paul Lee] Dongkuk CM, a leading company in the Dongkuk Steel Group specializing in coated and color steel sheets for construction, announced on Thursday its decision to file an anti-dumping (AD) complaint against Chinese-made construction-grade color and galvanized steel sheets.
Dongkuk CM expressed concerns over the indiscriminate influx of low-cost Chinese galvanized and color steel sheets, which are hindering the development of domestic companies striving for premium products and differentiation. They also pointed out that these imports distort domestic market prices and pose a threat to public housing safety due to substandard products. As the largest producer of construction-grade galvanized and color steel sheets in Korea, Dongkuk CM, in collaboration with other industry players, has decided to pursue the complaint.
Construction-grade galvanized and color steel sheets are used in a variety of applications. Low-cost variants are used for single-colored sandwich panels in factories and warehouses, while higher-end products, featuring design and functionality, are used for roofs, inner walls, outer walls, and signage. The domestic market size is estimated at 2.8 million tons annually, valued at around 3 trillion won as of 2024, with imports accounting for 1 million tons, 90% of which come from China.
Korea leads the global market in the premiumization of galvanized and color steel sheets, with domestic producers such as Dongkuk CM, SeAH CM, and KG Steel, all incorporating design and technology into their steel sheets to create differentiated products. These companies have transitioned from mass production focused on high volumes of low-variety products to premium steel producers offering a wide variety of products in smaller quantities, thanks to years of investment.
Dongkuk CM has raised concerns that the domestic market, which serves as a foundation for premium galvanized and color steel sheet manufacturers competing globally, may regress to low-cost product levels due to the influx of Chinese imports. This could gradually erode the growth potential of the industry, making trade regulation to protect the market a critical issue.
In fact, the import volume of Chinese-made construction-grade galvanized and color steel sheets has increased by 34.2%, from 760,000 tons to 1.02 million tons annually over the past three years, while the price has decreased by 23.3%, from $952 per ton to $730 per ton.
Due to the surge in low-cost imports, Dongkuk CM's operating profit in 2024 is expected to drop significantly compared to the previous year, with a projected decline of 84.0% for construction-grade galvanized steel sheets and 24.0% for construction-grade color steel sheets, indicating the tangible damage to the company.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
