Steel Trade Investigation: South Korean Steel Pipes

Overview:

Core Consultants was asked to conduct an inquiry as to the output of steel pipes from South Korean factories.

The inquiry formed part of a wider investigation into possible violations of trade practices which involve South Korea and China dumping steel and stainless steel pipes in Europe and USA.

Methodology:

As many South Korean mills do not publish their production figures, Core Consultants contacted market representatives as well as Chinese-based steel journalists. Some of the information was conflicting, and the data we found was estimated rather than exact figures.

We considered our findings against the reported Chinese customs data in order to determine whether the Chinese exports of steel to Korea, coupled with Korea’s alleged production figures, were less than what was officially reported as exports by South Korea.

Our Recommendation:

We noted that our findings conflicted with the official trade data, confirming some of our client’s suspicions.

Outcome:

This investigation is still ongoing and Core’s contribution was just one piece of a much larger puzzle. However if found guilty of misreporting their trades, then their could be consequences in terms of WTO infringements or additional tariffs levied against both China and South Korea’s steel pipes.