The government of Malaysia imposed anti-dumping duties on certain steel products originating or exported from Vietnam and Indonesia on Monday. These products include all cold-rolled stainless steel in coil, sheet, or any other form. The government defined such products as subject merchandise.
In a statement released yesterday, the Ministry of International Trade and Industry (MITI) said that the anti-dumping duty on steel from Vietnam will range from 7.81% to 23.84%. The anti-dumping duty on steel from Indonesia will be between 8.8% and 34.82%. MITI said that these duties are equivalent to the amount of the dumping margins which it previously determined.
“The collection of anti-dumping duty on the subject merchandise has been enforced by the Royal Malaysian Customs Department for five years from April 24, 2021 to April 23, 2026. The imposition of the anti-dumping duties on the subject merchandise from these countries is expected to address the issue of unfair trade practices,” it said.
The Investigation Leading to the Duties
These anti-dumping duties are the end products of an investigation which took place in July last year. During this investigation, the government probed subject merchandise originating or exported from Indonesia and Vietnam. The government conducted this investigation according to the provisions of the Countervailing and Anti-Dumping Duties Act 1993 as well as the Countervailing and Anti-Dumping Duties Regulation 1994. After Bahru Stainless Sdn Bhd, the only domestic manufacturer of steel products, filed a petition, the government decided to begin the probe.
The investigation showed that the prices of subject merchandise from Vietnam and Indonesia were extremely low. The prices which merchants charged when selling such merchandise in Malaysia were far lower than the prices for the same merchandise in those countries. In this way, the steel products from Indonesia and Vietnam damaged Malaysia’s domestic steel industry.
With regard to this investigation, MITI said that several stakeholders including local producers, foreign producers and exporters, importers, and all associations directly linked to the investigation have permission to obtain a copy of a non-confidential version of the related report. They may do so after submitting a written application to the ministry.
According to the latest statistics, Vietnam ranks 14th in the world in production of steel, Indonesia ranks 25th, and Malaysia is 35th. Data which the World Steel Association compiled showed that in 2019, Vietnam produced 20.1 million metric tons of steel. In that same year, Indonesia produced 6 million metric tons while Malaysia produced 4 million metric tons of steel.
Of the three countries, only Vietnam avoided a decline in annual steel production in 2019. It increased its output from 15.5 million metric tons in 2018. In contrast, Indonesia’s output fell from 6.2 million metric tons. Malaysia’s steel production also saw a reduction. In 2018, Malaysia produced 4.1 million metric tons of steel.
27th April 2021 14:42
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