A U.S. appeals court has rejected a claim by U.S. steelmaker Nucor that cheap electric power in Korea is a subsidy provided by the Korean government to POSCO.
According to industry sources on Oct. 24, the U.S. Court of Appeals for the Federal Circuit (CAFC) ruled in favor of POSCO in its appeal of a lawsuit filed by Nucor, which claimed that KEPCO’s cheap electricity rates were a subsidy for the Korean steelmaker. KEPCO is a state-run power generation company in Korea.
In 2017, Nucor filed a complaint with the U.S. Department of Commerce, claiming that KEPCO’s supply of electricity to POSCO at low prices during late night hours constituted a subsidy. As a result, Korean steel products are sold at lower prices, and anti-dumping duties should be imposed on them.
However, following the first trial, the CAFC sided with POSCO in the court of appeals. According to the ruling, the CAFC found that the electricity prices set by KEPCO were in line with market conditions and that KEPCO gave no special benefit to POSCO.
The CAFC found Nucor’s claim unconvincing and upheld the Court of International Trade’s judgment that POSCO was in compliance with regulations.