17:13 | 15/05/2015 Trade
The Malaysian Ministry of International Trade and Industry (MITI) has launched an investigation into alleged dumping of steel coils imported from Vietnam and China, following a petition filed by FIW Steel Sdn Bhd (FIW).
In a prepared statement, the MITI said it has received the petition from the Malaysian producer, requesting the imposition of dumping duties on imports of pre-painted, painted and colour coated steel coils from both Vietnam and China.
The petitioner alleges these steel coils are being dumped into the Malaysian market at prices much lower than those prevailing in the domestic markets of Vietnam, China or Malaysia.
Further, the petition alleges the anti-competitive practices are the direct and proximate cause of both the Malaysian steel coil industry and the petitioner specifically suffering material injury.
In addition, the petition alleges the absolute volume of the imports from Vietnam is causing irreparable material injury to the domestic industry and serves as a basis for the imposition of anti-dumping import duties.
The MITI has determined that there is sufficient prima facie evidence of dumping, injury and causal link and therefore has initiated a preliminary investigation on imports of pre-painted, painted and colour coated steel coils.
In accordance with Malaysia’s Countervailing and Anti-Dumping Duties Act of 1993 and related regulations, the MITI said an investigation will be undertaken and a preliminary determination made within 120 days from the date of initiation of the action.
If the final determination is affirmative the government will impose an anti-dumping duty at a rate necessary to prevent further injury to the domestic industry the MITI statement concluded.
In connection with the investigation, MITI will provide a set of questionnaire to interested parties (importers, foreign producers, exporters and associations). Other interested parties may request for the questionnaires no later than May 14, 2015 and may also provide additional supporting evidence to the MITI on or before May 28, 2015.
In the event no additional information is received within the specified period, the government will make its preliminary findings based on all available facts.
According to the petition, for the period October 1, 2013 to September 30, 2014 Vietnam exported an estimated 37,950 million tonnes of steel coil to Malaysia, accounting for 68.2% of market share.
The period of investigation is October 1, 2013 to September 30, 2014. However, for the purpose of analysing injury, data of the previous two years from October 1, 2011 to September 30, 2013 would also be considered, it added.
The petition lodged by FIW – a Singaporean and Japanese joint venture based in Malaysia – alleges the dumping margin amounted to 13.68%.
Ho Nghia Dung, President of the Vietnam Steel Association (VSA), in turn stressed that the association is working with domestic enterprises to coordinate an appropriate response to the petition.
Dung advised any interested party to cooperate fully in supplying information to the MITI to expedite the dispute resolution process and bring about a favourable resolution.