Steel Import affecting Malaysian companies

Steel

The Malaysian Iron and Steel Industry Federation (MISIF) is anticipating that demand for steel in Malaysia will increase by 6% for a couple of years in a row.

But that’s improbable to improve the fortunes of Malaysian steel companies owing to import penetration, Malaysia-based Hong Leong Investment Bank Research Stated in a November 12 research note.

“We walked away from the recent steel conference with a neutral feeling about the sector due to the insistent overcapacity issue in China,” it stated.

At a national steel conference in Petaling Jaya organized and held by MISIF last month, the steel federation forecasted Malaysia’s apparent steel consumption will hit 10.7 million tonnes by the end of this year, up 6.5% over 2013, before expanding further to reach 11.3 million, underpinned by continuous construction and infrastructure spending as well as property development activities.

But, imports are eroding the market share of Malaysia’s local steelmakers, and the bank wasn’t overly exhilarated by the possibility of trade remedies to safeguard local suppliers.

MISIF has tabled a chain of proposals to the Ministry of International Trade and Industry (MITI) with the vision that further measures are required to protect the local industry.

“Dumping activities” from China looked possible to persist in the medium term unless MITI implements a more effective and efficient anti-dumping policy, the bank analysts stated.

“Whilst we took comfort that [the government] may introduce additional measures in protecting the local steel producers’ interests, we think such issues will likely continue to be a long-drawn affair,” the analysts said. There have been “too many unsuccessful attempts, historically” to protect the local industry, it suggested.

 

 

 

Shreyas Tanna

About Shreyas Tanna

The winner of Mr. Pune 2009 Pageant, Mr. Shreyas Tanna is currently the young, dashing, and dynamic CEO of a market research company called Research N Reports in Pune. Fondly known as RNR, the company specializes in market research as well as industry analysis, and is closely associated with its parent company Absolute Markets Insights (AMI). Mr. Shreyas Tanna began his corporate journey as the Head of Corporate sales & PR at RED Entertainment while pursuing his degree for MMS (Marketing) from the MGM College of Management, Mumbai. After accomplishing the tedious task of balancing his work and education, he further polished his skills in Corporate Sales, Public Relations, Channel Development, Global Client Engagement, Strategic Consulting, and Brand Development by working with HDFC Life and ResearchMoz Global Pvt. Ltd. His dedication towards his work has even won him accolades such as the National Level Performer 2013 – HDFC Life and Mr. ResearchMoz 2015. A disciplined individual with a loving heart, he is often seen taking crisp walks with an engrossed look and a gentle smile within the premises of his company to interact with the various departments. And he will be usually followed by an adorable trail of his beloved trio of Shih Tzu babies proudly known as Gucci, Drake, and Paris. The most enticing thing that you will notice about this content and proud pet parent is his infectious positivity and the firm belief in his eyes, a reflection of his favorite quote, “LIFE IS BEAUTIFUL!”

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