The US Department of Commerce has issued preliminary countervailing duty rates on hot rolled steel flat products from South Korea, affecting major suppliers POSCO and Hyundai Steel Company for the year 2021.
In a recent trade development, the US Department of Commerce (DOC) has announced its preliminary findings from the administrative review of the countervailing duty (CVD) order on imports of certain hot rolled steel flat products (HRC) from South Korea. This preliminary decision has determined that two of South Korea’s major steel producers, POSCO and Hyundai Steel Company, have received subsidies that warrant a CVD rate of 0.88 percent and 0.78 percent, respectively, for the period of January 1, 2021, through December 31, 2021.
The DOC has also decided to rescind the review of the countervailing duties for 13 other companies that were initially part of this investigation. This move indicates that these companies will not face additional duties for the given period.
This review is part of ongoing efforts by the US to regulate international trade practices, ensuring that foreign producers do not receive unfair subsidies that could harm domestic industries. The countervailing duties are a tool used to offset such subsidies and level the playing field for American producers.
The preliminary nature of these results means that they are not yet final and could be subject to change. The DOC is expected to announce the final results of this review within 120 days from the publication of the preliminary findings. This timeline allows for further investigation and comment from interested parties.
The implications of these duties on South Korean steel exports to the US could be significant, potentially affecting the competitiveness of POSCO and Hyundai Steel Company in one of the world’s largest steel markets. The South Korean steel industry, which is a key player in the global steel market, will be closely monitoring the final decision.
The preliminary countervailing duties imposed by the US on certain hot rolled steel products from South Korea mark a critical point in international trade relations. With the final results pending, major steel producers like POSCO and Hyundai Steel are facing a period of uncertainty that could impact their business operations and trade with the US. The steel industry stakeholders will be awaiting the final decision to understand the full impact on the market dynamics.