Turkey sets anti-dumping margins for HRC imports from EU, South Korea

The Turkish trade ministry, which early last year launched an anti-dumping investigation into hot-rolled coil imports from the EU and South Korea, has now determined rates, ranging between 14.08%-49.84%, to be applied to deliveries from a series of foreign producers, according to an official document March 11 seen by S&P Global Commodity Insights.

"It is determined that EU and South Korean hot-rolled coil producers sold their products to Turkey under normal value in the investigation period," the ministry said in the March 11 document.

According to the ministry's decision, ArcelorMittal will be subject to a dumping margin of 39.83%, Tata Steel 30.64%, ThyssenKrupp and Liberty Steel 23.30% and all other EU producers 49.84%.

South Korean producer Posco will be subject to 14.62%, Hyundai Steel 14.08% and other South Korean producers 18.59%, it added.

After receiving the opinions and the claims of the relevant parties, the investigation report that will include the final determinations will be submitted to the Board of Evaluation of Unfair Competition for a final decision.

The investigation follows a complaint filed by Turkish Steel Producers' Association (TCUD) on behalf of Turkey's largest steel producers Erdemir, Colakoglu, Habas and Toscelik, covering the period October-December 2019 and January-September 2020.

Turkey's anti-dumping investigation decision was announced just two days after the EU imposed provisional anti-dumping duties of 4.8%-7.6% on imports of hot-rolled coil from Turkey, which are currently in force.

Ugur Dalbeler, vice president of Turkish Steel Exporters' Association and CEO of steelmaker Colakoglu, told S&P Global that the decision meant that it had been officially registered that EU mills were dumping sales into Turkey.

"We don't expect these dumping margins would have a significant effect as long as an inward processing regime exists in Turkey, which exempts exporters of finished steel, like pipe producers, feed stock steel import duties. Quotas should also be implemented," a manager of a major Turkish HRC producer told S&P Global.

S&P Global contacted a number of European steelmakers for comment, but had received no response by the time of publication.

Although Turkish buyers imported 5.6 million mt of HRC in 2021, 1.5 million mt higher than 2020, imports from the EU region, traditionally among its top suppliers, fell in 2021, according to Turkish Statistical Institute (TUIK) data.

France shipped 315,000 mt to Turkey in 2021, 130,000 mt lower on the year, while Romania's HRC exports to Turkey totaled 157,700 mt, down 28% on the year.

One of the sharpest declines in HRC imports was seen in imports from the Netherlands, which shipped 23,500 mt of HRC to Turkey in 2021, significantly down from 155,000 mt in 2020.

Turkish mills' HRC export from South Korea also declined in 2021 to 225,000 mt, down 20% on year, the data showed.

The affected products fall under CN codes: 7208.10.00, 7208.25.00, 7208.26.00, 7208.27.00, 7208.36.00, 7208.37.00, 7208.38.00, 7208.39.00, 7208.40.00, 7208.52.10, 7208.52.99, 7208.53.10, 7208.53.90, 7208.54.00, 7211.13.00, 7211.14.00, 7211.19.00, 7212.60.00, 7225.19.10, 7225.30.10, 7225.30.30, 7225.30.90, 7225.40.15, 7225.40.90, 7226.91.20, 7226.91.91 and 7226.91.99