The Investment, Trade and Industry Ministry (MITI) in Malaysia is set to launch an anti-dumping duty investigation into steel wire rods imported from China, Indonesia, and Vietnam. This move comes after a petition was filed by Southern Steel Bhd, a prominent domestic steel producer, alleging that these imports are being sold at prices significantly lower than those of local products. The company argues that the influx of these cheaper imports has caused considerable harm to the domestic steel industry.
Southern Steel’s concerns are echoed in MITI’s statement, which highlights the growing volume of imports from the aforementioned countries. The ministry has recognized the potential adverse effects of these lower-priced products on local manufacturers, particularly in a market where domestic firms are striving to maintain competitive pricing. By initiating the investigation under the Countervailing & Anti-Dumping Duties Act 1993, MITI aims to assess the validity of Southern Steel’s claims regarding the unfair pricing practices impacting the industry.
The investigation is set to follow a structured process. MITI will conduct a preliminary determination within 120 days of the investigation's initiation. If this preliminary determination supports the claims made by Southern Steel, the government could impose provisional anti-dumping duties. These duties would serve as a temporary measure to safeguard the domestic industry from further injury while the investigation continues.
As part of this comprehensive investigation, MITI plans to distribute questionnaires and relevant documents to various stakeholders. This includes importers, foreign exporters, and producers from China, Indonesia, and Vietnam, as well as their respective governments and relevant trade associations. This outreach is essential to gather the necessary information to understand the pricing dynamics and the extent of the alleged dumping activities.
The decision to investigate these imports is significant for the Malaysian steel industry, which has faced challenges due to international competition. Southern Steel’s proactive stance in filing this petition reflects the broader concerns within the industry about maintaining fair trade practices. The outcome of this investigation could potentially reshape the competitive landscape, ensuring that domestic producers are not undercut by foreign competitors engaging in pricing strategies deemed harmful.
