Malaysia imposes anti-dumping duties on stainless steel from four territories
Imports of stainless cold-rolled coil and sheet from China, Taiwan, South Korea and Thailand will be subject to anti-dumping duties until February 7, 2023, the Malaysian authorities announced on Thursday February 8.
The move was the result of investigations started in May 2017 after major Malaysian mill Bahru Stainless filed a petition on behalf of the domestic industry.
Bahru Stainless had alleged that imports from the four areas were being dumped in Malaysia at rates much lower than the domestic price, “causing material injury” to local producers, Malaysia’s Ministry of International Trade & Industry said.
For China, material from Shanxi Taigang Stainless Steel (Tisco) will be taxed 2.68%, while other Chinese mills will be subject to a 23.95% import tariff.
South Korea’s Posco faces a 4.44% tax, but there will be no duty for Hyundai BNG Steel and Hyundai Steel Co. Stainless steel from other mills in South Korea will be subject to an import tariff of 7.27%.
In Taiwan duties Tang Eng Iron Works faces duties of 7.78% and Walsin Lihwa Corp will be subject to duties of 2.79%. No duties were imposed for Yieh United Steel Corp (Yusco) and Chia Far Industrial Factory, while all other Taiwanese mills will have to pay 14.02%.
Stainless steel from Thailand’s Posco-Thainox will face import duties of 22.86% in Malaysia, while other Thai mills will be subject to a 111.61% duty.
The anti-dumping duties will be applied to cold-rolled stainless steel up to 6.5mm thick and in width of up to 1,600mm, classified under HS codes: 7219.31.00 00; 7219.32.00 00; 7219.33.00 00; 7219.34.00 00; 7219.35.00 00; 7220.20.10 00; and 7220.20.90 00.
A China mill source told Metal Bulletin that the proportion of Chinese stainless steel exports to Malaysia was small compared to their exports to the rest of the world, so the anti-dumping measures will not have a significant impact.
“Tisco is the main Chinese supplier of cold-rolled stainless steel to Malaysia, but the mill will probably be able to absorb the 2.68% duty easily and not decrease shipments to Malaysia by much,” he said.
A Singapore-based trader said resellers in the affected regions could export value-added products to Europe - by polishing, coating or perforating the stainless steel - if they lose some market share in Malaysia as a result of the anti-dumping measures.
Stainless end users in Malaysia welcomed the decision, given the low to zero duties imposed on major foreign mills.
“Most orders for 400-series stainless steel will now go to Yusco because they are not subject to any tax, while orders for 300-series will go to Tisco,” a Malaysian buyer said.
Market sources said end users would continue purchasing from Tisco because they believe its products are of a higher quality.
Metal Bulletin’s weekly price assessment for benchmark 304 stainless 2mm cold-rolled coil was $2,250-2,320 per tonne cif East Asian ports for the week ending Wednesday February 7.