The US Department of Commerce has issued preliminary anti-dumping duties of up to 65% on Korean-made monomers and oligomers, key raw materials for chemical products. This development directly impacts overseas buyers sourcing these intermediates from South Korea, potentially raising costs and disrupting supply chains. Two Korean firms face margins of 10.94% and 65.72%, while a non-responsive company may face a 188% duty.
Preliminary ruling details
The US Commerce Department announced preliminary anti-dumping margins of 10.94% for Company A and 65.72% for Company B, both South Korean producers of monomers and oligomers. These chemicals serve as raw materials and intermediates for a wide range of chemical products, making them critical to global supply chains. The preliminary ruling follows an investigation initiated after US industry petitioners alleged dumping margins of 137–188%.
Company responses and impact
Only two South Korean firms, A and B, responded to the Commerce Department's questionnaires and were subject to the investigation. A third company, C, did not respond and is expected to receive the highest margin of 188%, effectively forcing it to exit the US market. The preliminary margins for A and B are significantly lower than the initial allegations but still pose a burden for exporters.
Compliance and logistics signals
The South Korean Ministry of Trade, Industry and Energy (MOTIE) has been supporting industry responses since April last year, holding meetings and providing guidance. It warned companies about the potential application of Adverse Facts Available (AFA), which allows the Commerce Department to apply the most unfavorable information if firms fail to cooperate fully. A MOTIE official stated, "We will continue to communicate with the industry and review response strategies to ensure our companies do not receive unfair rulings in the final determination scheduled for May."
What buyers should watch
Overseas buyers of monomers and oligomers from South Korea should monitor the final ruling expected in May 2025. The preliminary margins could lead to higher prices or supply disruptions, especially for products from Company B. Buyers may need to explore alternative sourcing options or negotiate contract terms to mitigate potential cost increases. The case highlights the importance of supplier compliance with US trade investigations.
Source: Read the original report | Published: January 02, 2026