The Malay 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 issued on 9 April 2013, the Ministry of International Trade and Industry (Miti) said it would initiate a preliminary anti-dumping investigation on stranded wire, ropes and cables from China, following a petition from a Malaysian steel 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 in China.
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 said 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.
Source: Daily ‘The Star’, Kuala Lumpur; 10 Apr 2013