Malaysia Introduces Five-Year Safeguards on Steel Imports from Key Asian Partners

Malaysia's Ministry of Investment, Trade and Industry (MITI) has issued a notice of the imposition of definitive anti-dumping duties on the importation of flat-rolled products of iron or non-alloy steel, plated or coated with tin, from China, India, Japan, and South Korea. The duties are effective for five years from May 11, 2025, and are intended to safeguard the local steel industry against unfair pricing.

Key Highlights:

Scope of Duties: Anti-dumping duties aim at flat-rolled products of steel having a width of 600mm or above, clad, plated, or coated with tin (including electrolytic tinplate) that are used extensively in the manufacturing and construction industries.
Duration and Reason: The restrictions will have effect for five years, after which there was a thorough investigation initiated in August 2024 following a local producer's petition, Perusahaan Sadur Timah Malaysia (Perstima) Berhad. The investigation concluded that the four countries' exporters were dumping steel at prices lower than their domestic markets, inflicting material harm on Malaysian producers. The investigation report concludes.
Duty Rates: Provisional duties varied between 2.52% and 36.8% based on the exporter, and final rates are likely to be in the same range, giving immediate and long-term protection to local manufacturers.
Industry Impact: The action aims to stabilize the prices of steel domestically, preserve jobs, and attract investment to Malaysia's steel industry. Exporters from South Korea, Japan, India, and China will now have their access to the Malaysian market restricted, which might redirect their supply to other parts of the world.
Global Trend: The step comes in alignment with a worldwide trend toward protectionist trade policy, as nations look to protect crucial industries against dumping and undercutting prices.