By Aidila Razak
The anti-dumping duties for steel wire rods does not go far enough to protect local players, said Malaysian steel manufacturer Ann Joo Resources.
Its group managing director Lim Hong Thye said that this is because it does not take into account the tax rebates enjoyed by certain foreign exporters.
“Ann Joo welcomes the decision on the anti-dumping duties. However, we urge the government to look into the issue of nine percent tax rebates currently still enjoyed by China steel mills exporting borron-added wire rods and rebars,” he said in an email to KiniBiz.
He said that this includes Chinese steel manufacturing giants Jiangsu Shagang Group and Jiangsu Yonggang Group, which have also escaped the anti-dumping duties.
The Shagang Group is a Fortune 500 company while Yonggang Group’s production of finished steel in 2012 surpassed that of the entire Malaysian steel industry.
Lim said that without the dumping activities and tax rebate, Ann Joo would be able to compete anywhere in the southeast asia.
“In fact, Ann Joo had been a major supplier of long products in the Asean market up until mid-2012 when dumping activities became rampant in this region,” he said.
Analysts view Ann Joo as one of the winners of the government’s decision to impose anti-dumping duties on most exporters from China, South Korea, Taiwan and Indonesia starting today.
Besides the two Chinese giants, Indonesia firm PT Ispat Indo is also exempted from duties. Turkish exporters will not face duties as their margins are less than two percent.
MIDF Research yesterday questioned the policy, which follows an Amsteel Mills-initiated petition to the Ministry of International Trade and Industry, is incomplete as it spares giant exporters.
However, Affin Investment Bank in its note said that the duties could be an impetus for the government to further protect the steel industry.
You must be logged in to post a comment.