POSCO factory fire could benefit Chinese exports

A fire broke out at POSCO's South Korean stainless steel line #2 and hot rolling mill #2 (carbon steel) in Pohang, North Gyeongsang province, limiting their production. It is likely that this will benefit the export of stainless steel coils from China to South Korea.

The cause of the fire at POSCO's Pohang plant and the damage is still under investigation.

South Korea imposed anti-dumping duties on stainless steel coils from China in 2021. As a result, stainless steel exports from China to South Korea have dropped sharply.

In the first seven months of 2022, China exported about 206,000 tons of stainless steel to South Korea, down 39.15% from 130,000 tons in the same period a year ago.