2.8 Million Tons Annually — a 3 Trillion Won Building-Materials Market Being ‘Eroded’ by Low-Priced Chinese Products
Government-Led Trade Regulation ‘Urgently Needed’ — Dongkuk, SeAH and Other Firms Mount a Joint Response
Dongkuk CM (CEO Park Sang-hoon), the Dongkuk Steel Group affiliate specializing in coated and color-coated steel sheets, has decided to file an anti-dumping (AD) petition against Chinese-made color-coated and coated steel sheets for construction use.
Dongkuk CM decided to pursue the petition together with its industry peers, as the country’s largest producer of coated and color-coated steel sheets for construction, out of concern that the indiscriminate inflow of low-cost Chinese coated and color-coated steel sheets ▲hinders the development of domestic manufacturers striving for premiumization and differentiation, ▲distorts prices in the domestic market, and ▲threatens the residential safety of the public with substandard products.
Coated and color-coated steel sheets for construction have a wide range of uses. Low-grade products are used as single-color sandwich panels for factories and warehouses. High-grade products, which offer both design and functionality, are used as interior and exterior building materials such as roofs, interior walls, exterior walls, and signage. As of 2024, the domestic market stood at about 2.8 million tons per year, equivalent to roughly 3 trillion won in value. Of this, imports accounted for 1 million tons, and Chinese products made up 90% of imports.
Korea is a country that leads the premiumization of coated and color-coated steel sheets in the global market, with products such as ‘Luxteel’ being representative examples. Domestic producers include Dongkuk CM, SeAH CM, and KG Steel. Judging that each company could secure a differentiation advantage by incorporating design and technology into steel sheets to add color and functionality, these firms have, through years of investment, been growing from mass-production steelmakers focused on ‘few varieties, high volume’ into premium steelmakers pursuing ‘many varieties, small volume.’
Dongkuk CM assessed that market defense through trade regulation is urgently needed, out of concern that the domestic market — the home base of premium coated and color-coated steel sheet manufacturers that must grow by competing with foreign steelmakers in the global market — could regress to a low-grade-product level and gradually lose its growth momentum amid the proliferation of imported Chinese coated and color-coated steel sheets.
In fact, imports of Chinese coated and color-coated steel sheets for construction have increased 34.2% over the past three years, from 760,000 tons to 1.02 million tons annually, while the unit price has also fallen 23.3%, from 952 dollars to 730 dollars per ton.
Amid the surge in low-priced imports, Dongkuk CM’s domestic operating profit in 2024 plunged by -84.0% year-on-year for construction coated steel sheets and -24.0% for construction color-coated steel sheets, with tangible damage becoming increasingly evident.
Dongkuk CM regards ‘premiumization and differentiation’ as the only path to survival amid the rising global trade barriers of the Trump 2.0 era. Judging that its domestic base can no longer be allowed to collapse, the company plans to move to defend against low-priced Chinese coated and color-coated steel sheets after detailed coordination with domestic peers such as SeAH CM, and intends to move quickly on the petition so that the AD filing can produce effective regulatory results from the first half of the year at the latest.
The industry is concerned that, should the imposition of tariffs be considered on hot-rolled steel sheets — for which an investigation is expected to be launched — there could be a surge in circumvention exports, with products being disguised as coated or color-coated steel sheets after undergoing minimal simple post-processing such as coating or plating within China.
A Dongkuk CM official added, “This is a time when strategic trade responses based on a macro analysis of the steel production structure are needed,” noting that “there is a need to apply trade regulations in stages, starting from final steel products, so as to minimize friction with neighboring countries while at the same time promoting the mutual survival of the steel industry.”
Meanwhile, Dongkuk CM also signaled strong legal action against defective Chinese coated and color-coated steel sheets that threaten residential safety. The company revealed that most Chinese color-coated steel sheets currently circulating in the market fall far short of the coating weight (90g/㎡) stipulated by the Building Act, at a level of just 60g/㎡, and do not even list the manufacturer. Coating thickness is a matter directly linked to corrosion and fire safety. About 2.7 million tons have flowed into the country over the past three years.
▲ Dongkuk CM Busan Plant