Posted on 13 Mar 2026
Low-priced Japanese steel materials have been found to have increased in import volume despite anti-dumping tariff measures. Although provisional tariffs have been imposed for half a year, Japanese companies continue to engage in circumventing exports by channeling volumes through bonded areas. In some product categories, Japanese products are even filling the vacuum left by Chinese products that had been disrupting the domestic market.
According to the Korea Iron and Steel Association on March 12, domestic imports of Japanese hot-rolled steel coils in February this year were tallied at approximately 125,800 tons. This represents a surge of over 81% compared to September last year (84,019 tons), when provisional anti-dumping tariffs began to be imposed. This accounts for 70% of total hot-rolled steel coil imports in February. Japanese hot-rolled steel coil imports, which had fallen below 80,000 tons in the second half of last year, have steadily recovered volumes since then, recording the highest volume in one year since February last year (164,028 tons).
Although the government made a final ruling at the end of last month to impose anti-dumping duties of up to 33.43% on hot-rolled steel coils from Japan and China, concerns are growing in the industry that the offensive from imports will continue. The import price of Japanese hot-rolled steel coils is recently estimated to be around $495 per ton (approximately 730,000 won). This is approximately 100,000 won cheaper compared to the domestic distribution price of 830,000 to 840,000 won.
Hot-rolled products are basic materials used to manufacture steel products such as cold-rolled steel and steel pipes. They are widely used across the manufacturing industry, including shipbuilding, automobiles, and machinery, and the domestic market size reaches approximately 10 trillion won as of 2024.
Japanese hot-rolled steel coils are understood to be flowing into the country primarily by utilizing bonded areas as a channel to circumvent anti-dumping tariffs. Imported raw materials that enter the country through bonded areas can be exempted from tariffs under the condition that they will be re-exported overseas after processing. However, the industry has raised concerns that some of the volumes entering through bonded areas are being used for domestic consumption. Currently, more than half of the hot-rolled steel coil volumes imported from Japan are reported to pass through bonded areas. An industry official said, “Japanese companies appear to be trying to push in as much volume as possible through bonded areas,” adding, “Although the final anti-dumping ruling has been made, it will not be easy for domestic prices to recover.”
The low-price offensive of Japanese steel products is intensifying further in product categories where anti-dumping tariffs have not been imposed. Domestic imports of Japanese H-beams reached 15,071 tons last month, accounting for 67% of total imports (22,468 tons) during the same period. This was followed by Vietnamese products at 6,869 tons and Chinese products at 140 tons. Since October last year, when domestic companies applied for an extension of anti-dumping tariffs on Chinese H-beams, monthly imports of Chinese products have decreased by approximately 3,500 tons, while Japanese imports have increased by 5,000 tons, showing a pattern of replacing the volume.
H-beams are structural steel used in the construction and civil engineering sectors, including high-rise buildings and bridges. As the domestic construction recession prolongs, H-beam demand recorded its lowest level ever last year and is expected to continue declining this year as well. Domestic companies are absorbing production volumes through production cuts and exports amid the volume offensive from Japan and China. Major steelmakers such as Hyundai Steel and Dongkuk Steel are successively raising H-beam selling prices due to rising manufacturing costs, but the prevailing view is that it remains uncertain whether these increases can be properly reflected in the distribution market.
Source:Business Korea
