Malaysia’s Ministry of International Trade and Industry (MITI) has announced the imposition of provisional anti-dumping duties on certain flat-rolled products of iron or non-alloy steel imported from China, India, Japan, and South Korea. The decision, effective January 11, 2025, aims to protect the domestic steel industry from unfair trade practices.

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Details of the Provisional Duties

• Scope of Products: The duties apply to flat-rolled iron or non-alloy steel products with a width exceeding 600mm (23.62 inches).
• Duty Range: The rates vary from 2.52% to 36.80% depending on the country and specific exporter.
• Duration: The provisional measures will remain in place for up to 120 days, with a final determination set for May 10, 2025.

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Background and Rationale

The decision follows an investigation initiated in August 2024 after a petition from a domestic steel producer. The petitioner alleged that imports from the four countries were being sold below their domestic market prices, causing material harm to Malaysia’s steel industry.

The investigation concluded that these imports had created adverse effects on local producers, justifying the imposition of temporary duties while a final determination is made.

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Key Timelines

• January 11, 2025: Provisional anti-dumping duties take effect.
• January 20, 2025: Deadline for submitting feedback on the preliminary determination.
• May 10, 2025: Final decision on anti-dumping duties to be announced.

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Implications for the Steel Industry

For Malaysia:

The duties are expected to provide temporary relief to domestic producers, allowing them to recover from pricing pressures caused by low-cost imports.

For Exporting Countries:

Producers in China, India, Japan, and South Korea may face higher costs to access the Malaysian market, potentially affecting their export volumes.

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Conclusion

Malaysia’s move to impose provisional anti-dumping duties underscores its commitment to safeguarding its domestic industries against unfair trade practices. As stakeholders await the final determination in May 2025, both domestic and international players are encouraged to engage with the process and provide feedback to ensure a fair and balanced outcome.