Malaysia: Provisional measures to help boost Southern Steel’s performance

18/11/2012 12:00 - 420 Views

KUCHING: Southern Steel Bhd (Southern Steel) is likely gain from the recent implementation of the provisional measures by the International Trade and Industry Ministry (Miti).

According to OSK Research Sdn Bhd (OSK Research), in October 2012 Miti announced that the government had completed preliminary anti-dumping investigations on steel wire rods imports from various countries.

The new move within the steel sector by the government was set to curb steel imports, leaving room for local wire rods producers such as Southern Steel to flourish, the research firm noted.

The measure to curb wire rod dumping would likely deter non-genuine imports of wire rods as importers faced the risk of their deposits being forfeited should the government find sufficient evidence of dumping activities.

The research firm stated that, “The provisional measures now require importers of wire rods to pay a provisional anti-dumping duty ranging from zero per cent to 33.62 per cent.”

Nonetheless, it was cautious on the impact of the provisional measure as wire rods imports had declined since the petition for the implementation of the new duty was submitted to the government.

The research firm expected slight recovery in the local steel prices despite a recent rebound in international steel prices, on the back of domestic long steel prices that held steadier than international prices in the recent down cycle.

November 14, 2012, Wednesday

Source: theborneopost.com