Afternoon Highlight (10/04/13/59/757) Miti starts anti-dumping probe on steel products from China

Miti starts anti-dumping probe on steel products from China

PETALING JAYA: The Government will likely impose an anti-dumping duty on imported steel-related stranded wire, ropes and cables from China if the final investigation proves that the products were being dumped into Malaysia at low prices, causing material injury to local producers, said industry sources.

In a statement yesterday, the International Trade and Industry Ministry (Miti) said it would initiate a preliminary anti-dumping investigation on stranded wire, ropes and cables from China, following a petition from “a domestic producer”.

Without identifying the petitioner, Miti added that the latter had alleged that the imported goods from China into Malaysia were sold at a price much lower than the price in the domestic market of the alleged country.

The petitioner further claimed that the imports from China had increased in terms of absolute quantity, resulting in the domestic producer suffering from material injuries, including profitability, price suppression, a reduction in domestic sales volume, a loss of market share, negative returns on investment, a decrease in the number of employees and an inability to raise capital.

Miti pointed out that it had determined that there was sufficient evidence of dumping, injury and causal link, culminating in the decision to initiate a preliminary investigation on the imported goods.

In accordance with the Countervailing and Anti-Dumping Duties Act 1993 and its related regulations, a preliminary determination would be made within 120 days from the date of initiation.
If the final determination is affirmative, then the Government might impose an anti-dumping duty based on the margin of dumping.

Meanwhile, an industry source told StarBiz that domestic pre-stress concrete steel producers such as Southern PC Steel Sdn Bhd, a 100% unit of Southern Steel Bhd (SSB), Kiswire Sdn Bhd and specified steel wire rope maker Bekeart Malaysia, a joint venture between Belgium-based Bakeart and SSB, could stand to be major beneficiaries if the Government decides to impose an anti-dumping duty on the stranded wire, ropes and cables from China.

“The stranded wire, ropes and cables are mainly used in construction-related projects such as flyovers, bridges and in the oil and gas operations.

“It is highly likely the petitioner to Miti is one of the SBB-linked companies because they are major producers of these products,” added the source.
Currently, China's steel industry has an installed capacity of about 900 million to one billion tonnes per year. China's steel production annually is estimated at 780 million tonnes, out of which 700 million tonnes are used for domestic consumption, said the source.

Source : The Star

Date : 10 April 2013

Afternoon Highlight (10/04/13/59/757)