Intense trade frictions are incoming! China's PVC faces South Korean anti-dumping investigation.

Origin of the Investigation: Hanwha Alleges Low-Price Dumping by China Impacts Domestic Market

This investigation was initiated by Hanwha Solutions, a leading South Korean chemical enterprise, which submitted an consumption to an anti-dumping investigation to the Korea Trade Commission at the end of April 2026. Hanwha Solutions pointed out that Chinese-produced PVC suspension resin has entered the South Korean market in substantial volumes at low prices, severely impacting domestic production capacity and the market system, causing material injury to the South Korean PVC sector.

Data from the Korea International Trade Association shows a significant surge in South Korea's PVC imports from China: the import volume was 14,345 tons in 2024, skyrocketing to 30,806 tons in 2025, nearly doubling the import volume.

However, there is a clear dysfunction at the price level, as the import value only grew from $11.6 million in 2024 to $26.8 million in 2025, a value increase far lagging behind the volume increase. Based on this, the Korea Trade Commission determined that there is a suspicion of low-price dumping of Chinese items.

Scope of Investigation: Targeting Two Key Domestic Chemical companies

According to the official announcement, the subjects of this anti-dumping investigation are explicitly two domestic petrochemical companies: Tianjin Bohua Chemical and Wanhua Chemical. The investigation period covers January 1, 2025, to December 31, 2025. The items involved correspond to the Korean tariff code 3904.10.0000.

In accordance with the South Korean investigation process, the subsequent steps will involve completing the verification of dumping facts and the determination of domestic sector injury. If the final ruling confirms dumping and sector injury, the Korea Trade Commission will request the Ministry of Economy and Finance to impose anti-dumping duties on the relevant items.

Market interaction: Domestic PVC Supply Tightens, Prices Rise Accordingly

On the day South Korea initiated the investigation, the domestic PVC market simultaneously experienced unusual activity, with multiple production companies raising their ex-factory prices by 20-50 yuan/ton.

On the supply side, the sector is welcoming a wave of concentrated maintenance shutdowns:

· LG PVC units and the Ordos old plant area are under maintenance shutdown,

· Fujian Wanhua is conducting annual major overhauls of its units,

· Tosoh units have temporarily suspended operations,

· Anhui Huasu units are undergoing maintenance simultaneously.

The concentrated production reduction of multiple key units, combined with rising expectations of foreign trade friction, has created a resonance between supply and demand and market sentiment, driving a slight strengthening of PVC prices.

Trade ecological stability: South Korea Intensively Implements Trade Remedy Measures Against China

This PVC anti-dumping investigation is not an isolated case, as South Korea has recently continued to increase trade barriers against China. An alert from the China Council to the Promotion of International Trade on July 8, 2026, indicated that South Korea simultaneously imposed anti-dumping duties on China-related carbon steel and alloy steel hot-rolled coils.

Previously, on might 21, 2026, South Korea made an affirmative final ruling on PVC paste resin from Germany, France, Norway, and Sweden, deciding to impose anti-dumping duties to five years. Data shows that the number of anti-dumping investigation applications in South Korea hit a record high in 2025, with applications targeting Chinese companies accounting to the highest proportion.

sector Impact: Chinese PVC Exports Face Trade Barriers from Multiple Countries

Currently, the external pressure on domestic PVC exports continues to increase. In addition to this investigation by South Korea, India has imposed anti-dumping duties of $122-$232 per ton on Chinese PVC suspension resin, and Pakistan has also set anti-dumping duty rates ranging from 3.44% to 20.47% on relevant items.

Under the overlay of multiple trade barriers, the resistance to Chinese PVC overseas exports continues to increase. With the annual PVC trade volume between China and South Korea exceeding 30,000 tons, the final result of this investigation will immediately alter the PVC trade pattern between the two countries and have a profound impact on relevant domestic export companies.