Backdrop & Context
Malaysia had launched an anti-dumping investigation in 2024 after concerns were raised about potential market distortions caused by low-priced steel wire rod imports. Southern Steel Berhad, one of the key domestic producers, feared that Malaysia could become a dumping ground for these products as other countries imposed trade restrictions. This prompted authorities to act preemptively to shield the local steel industry from injurious pricing trends.
The focus of the probe was to determine whether the influx of imported wire rods, particularly from China, Indonesia, & Vietnam, was occurring at unfairly low prices, which could harm Malaysia’s domestic producers. Such measures are common in global trade to ensure a level playing field in the market.
Who’s Involved?
The main player behind the investigation was Southern Steel Berhad, a major Malaysian steelmaker with a vested interest in maintaining fair market conditions. The investigation was overseen by Malaysia’s Ministry of Investment, Trade, and Industry, the authority responsible for trade remedy actions under the country’s legal framework.
The countries at the center of the AD probe, China, Indonesia, and Vietnam, are among the world's top steel producers and exporters. Their involvement highlights the broader dynamics of regional steel trade competition, particularly in Southeast Asia.
Reason Behind Termination
In an official gazette dated April 15, 2025, MITI announced the cessation of the investigation following the withdrawal of the original complaint by Southern Steel Berhad. Without an active complainant, the legal basis for pursuing the case ceased to exist. As a result, no duties or trade restrictions will be imposed on the specified steel wire rods.
This termination implies that Malaysia no longer perceives a serious threat of market injury or has opted for a more open trade approach in the absence of compelling evidence or support from domestic stakeholders.
Products Under Investigation
The AD probe focused on certain steel wire rods falling under four specific Harmonized System codes: 7213.91.1000, 7213.91.2000, 7213.91.9000, and 7227.90.9000. These codes cover wire rods commonly used in construction, automotive, & industrial manufacturing.
The inclusion of these categories indicated that the Malaysian steel sector was particularly concerned about the foundational raw materials for downstream industries being subjected to foreign pricing pressure.
Impacts on Domestic Industry
For Malaysian producers like Southern Steel Berhad and others, the withdrawal may signal a strategic reassessment of local market dynamics. It is possible that either market conditions have improved or that global price stabilizations have reduced the perceived risk of dumping.
The decision could also ease supply chain concerns among downstream manufacturers who rely on steady, competitively priced imports of wire rods, especially in industries where raw material costs directly impact production and export viability.
Reactions from Trade Partners
Though no official responses were released by China, Indonesia, or Vietnam, trade experts expect this development to be welcomed, as it allows steel exporters from these countries to continue supplying Malaysian buyers without additional duties or scrutiny.
It also strengthens Malaysia’s trade ties within ASEAN and China-led trade frameworks like RCEP, promoting a more liberalized regional steel trade environment.
Policy Shift or Isolated Decision?
While this move may appear to be an isolated procedural conclusion, analysts suggest it could hint at Malaysia's broader approach to trade remedy measures—less litigious and more conciliatory when market self-correction appears sufficient. It also reflects the importance of balancing domestic industry protection with broader economic and diplomatic interests.
Going forward, whether this signals a reduced appetite for AD cases or simply a one-off resolution remains to be seen.
Key Takeaways:
• Malaysia terminated the AD investigation on imported wire rods from China, Indonesia, & Vietnam.
• The decision followed the withdrawal of the complaint by Southern Steel Berhad.
• The termination became effective on April 15, 2025.
• The wire rods were classified under HS codes 7213.91.1000, 7213.91.2000, 7213.91.9000, & 7227.90.9000.
• No anti-dumping duties or restrictions will be imposed on these imports.
• Malaysia’s trade policy appears to favor open market engagement over prolonged litigation.
