A steelmaking association representing producers in Malaysia and neighboring ASEAN (Association of Southeast Asian Nations) countries has indicated that rising steel imports and perceived unfair trade practices are harming the profitability of regional steel producers. South East Asia Iron and Steel Institute (SEASAI) claims that Malaysia’s Ministry of Investment, Trade, and Industry is overlooking the “surging imports”.
According to reports, Malaysia’s iron and steel industry has voiced concerns over increasing threats from surging imports, unfair trade practices, and growing operational costs. Industry players are also questioning the lack of response from the Ministry of Investment, Trade and Industry’s (MITI) Independent Steel Committee, despite a comprehensive review and report being submitted.
According to SEAISI, the Malaysian government has not taken any visible steps or demonstrated progress in addressing the increasing Chinese steelmaking capacity in Malaysia and surrounding countries, in early May.
The group says that, “Governments around the world have been adopting a variety of strategies to help their steel industries,” citing the UK Parliament for passing an emergency law permitting the Government to take control over British Steel Plant, which employs over 2,700 people and contributes to the UK steel industry.
The Malaysian Iron & Steel Industry Federation (MISIF) asks the Government to take a bold and immediate decision, according to SEASAI.
“Coordinated intervention is urgently needed to prevent long-term damage to the industry and safeguard national production capabilities,” SEASAI says.
“Chronic overcapacity remains one of the most critical structural issues, a consequence of past policy decisions. Government leadership is essential in developing a coordinated, long-term solution to rebalance supply and demand and support industry rationalization,” they added.