On August 20, the Korea Trade Commission (KTC) announced the preliminary findings of its anti‑dumping investigation into solid sodium hydroxide (caustic soda), determining that products originating from the Chinese mainland and the Taiwan region had been dumped and recommending that the Korean Ministry of Economy and Finance impose anti‑dumping duties.
According to the information released by the KTC, the recommended duty rates for Chinese mainland companies vary significantly:
- Shandong Binhua Dongrui Chemical and its affiliates: 3.66%
- Tianjin Lianlian Supply Chain: 19.93%
- Skyey Impex: 22.21%
- Other Chinese mainland suppliers: 17.58%
For the Taiwan region, Formosa Plastics and other suppliers are subject to a uniform rate of 38.89%.
The investigation specifically targets solid sodium hydroxide (Solid Sodium Hydroxide), not all caustic soda products. Solid caustic soda is easier to store and transport over long distances compared with liquid caustic soda, making it a common form in international trade.
The KTC stated that the products in question are mainly used in paper making, textiles, detergents, and water treatment. In March this year, a Korean company, Youngjin Co., Ltd., filed an anti‑dumping petition, and the KTC subsequently initiated the investigation, which covers solid caustic soda suppliers from both the Chinese mainland and the Taiwan region.
Caustic soda is a typical regional bulk chemical and not a high‑value‑added product. South Korea itself has a well‑established chlor‑alkali industry, with companies such as LG Chem and Lotte Chemical producing caustic soda and related chlorine products. However, with the release of new chlor‑alkali production capacity in China, export pressure has increased, and neighbouring markets such as Japan and South Korea have become key destinations for these exports. Thus, this Korean investigation reflects the intensifying competition between China's growing caustic soda supply and South Korea's domestic chlor‑alkali industry.
It is worth noting that in this preliminary ruling, the duty rates vary considerably among different suppliers: Chinese mainland companies face rates ranging from 3.66% to 22.21%, while suppliers in the Taiwan region are subject to a uniform 38.89%. The Korean authorities have not yet released the full rationale for the duty calculations; the specific reasons will have to await the final investigation report.
In response to the high rate, Formosa Plastics stated that its exports of solid caustic soda to South Korea are limited, and that the Korean market accounts for a relatively small proportion of its overall business, so the impact of the measures is expected to be limited.
