Malaysia Imposes Preliminary Anti-Dumping Duties on Tinplate Imports
In a move to safeguard its local steel industry, Malaysia has imposed preliminary anti-dumping duties on imports of tinplate, a flat-rolled product made from iron or non-alloy steel that is coated with tin. These products, primarily used in manufacturing containers, food packaging, and automotive parts, are being imported into Malaysia from China, India, Japan, and South Korea at what the Malaysian Ministry of Investment, Trade and Industry deems unfairly low prices. The preliminary duties, announced on January 11, 2025, will range from 2.52% to 36.8% depending on the country of origin.
Background of the Anti-Dumping Investigation
The anti-dumping duties stem from an investigation initiated by MITI in August 2024 after a petition filed by Perusahaan Sadur Timah Malaysia, Perstima, a major player in Malaysia’s tinplate manufacturing sector. Perstima alleged that foreign imports of tinplate from these four countries were sold at prices lower than those in their domestic markets, which it argued caused substantial damage to the local industry.
MITI’s preliminary findings supported these claims, and they determined that the prices of imported tinplate from China, India, Japan, and South Korea were significantly lower than the market value in Malaysia. As a result, MITI decided to impose provisional anti-dumping duties to prevent further harm to local producers while the investigation continues.
Duty Rates: Differentiated by Country
The preliminary duties that Malaysia will impose will vary depending on the country of origin:
• China: Duties ranging from 2.52% to 36.8%
• India: Duties ranging from 2.52% to 36.8%
• Japan: Duties ranging from 2.52% to 36.8%
• South Korea: Duties ranging from 2.52% to 36.8%
These rates are based on the dumping margins identified in the preliminary findings of MITI’s investigation, and they will apply specifically to flat-rolled tinplate products that meet the specified size criteria: 600mm width or more, and that are either clad, plated, or coated with tin.
Purpose of the Anti-Dumping Measures
The key purpose of this provisional measure is to prevent further injury to Malaysia’s domestic tinplate producers. MITI believes that unless these duties are applied, the dumping of cheap tinplate from foreign markets will continue to harm the domestic tinplate manufacturing sector, leading to lost market share, reduced revenues, and potential job losses within the industry.
The introduction of these duties comes at a time when the steel and metals industry in Malaysia, along with other parts of the ASEAN region, is facing intense competition from global markets. This move is part of Malaysia’s ongoing efforts to protect its industries from unfair trade practices that undermine the viability of its local manufacturing and production capacities.
Duration of the Anti-Dumping Measures
These preliminary duties are set to be effective for a period of no more than 120 days, starting from January 11, 2025. This provisional measure will be in place as MITI continues its anti-dumping investigation. During this period, affected companies will be required to provide security for the duties, which will be in the form of a guarantee equivalent to the amount of the dumping margins determined in the preliminary investigation.
The 120-day period will give MITI ample time to conduct a more thorough assessment of the situation, taking into account any additional evidence that may come to light. Based on the findings of the investigation, MITI may decide to either extend the duties, adjust the rates, or revoke them altogether.
Global Trade Implications
While Malaysia’s move to impose anti-dumping duties is a step aimed at protecting its domestic industries, it also reflects the ongoing global trade tensions and protectionist measures that have been increasingly common in recent years. The decision could have broader implications for global tinplate trade, especially given the economic prominence of the affected countries.
• China, India, Japan, and South Korea are all major exporters of tinplate. The duties could lead to higher prices for tinplate in Malaysia and could potentially influence trade relations between Malaysia and these countries.
• Additionally, the move may prompt similar actions from other countries, especially within the ASEAN region, where countries are closely monitoring the effectiveness of Malaysia’s new measures.
Perstima’s Role and the Industry’s Concerns
Perstima, which filed the petition for the anti-dumping investigation, has emphasized the importance of these duties in preserving the integrity and profitability of the local steel sector. Perstima has argued that dumping from foreign producers has caused significant financial harm to domestic manufacturers who are unable to compete with the low prices offered by foreign competitors.
The local tinplate industry, like many other manufacturing sectors globally, is highly sensitive to fluctuations in global market prices. Dumping often results in artificially low prices that put domestic producers at a competitive disadvantage, forcing them to either reduce production or accept lower profit margins.
Future Developments
The situation surrounding the anti-dumping duties on tinplate imports is still unfolding, and the investigation will continue throughout the 120-day provisional period. Depending on the outcome of the full investigation, Malaysia’s government may impose final anti-dumping duties that could be permanent.
The next steps in this process will involve further scrutiny of the impact of the duties on both the local industry and global trade dynamics. Mitigating trade barriers and finding solutions that are mutually beneficial to both local producers and foreign exporters will remain a key focus of discussions between Malaysia and the affected countries.
In the meantime, Malaysian manufacturers will look for ways to maximize the opportunities afforded by the duties while navigating the evolving global market conditions. As the investigation continues, both exporters and domestic producers will need to adjust to this new trade landscape.
