Indonesian Steel Breaks through Malaysian Market
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Indonesian hot rolled coils (HRC), which is a type of steel product, can now enter the Malaysian market. The coils managed to tap Malaysia’s market following their government’s decision to stop the investigation on safeguards after assessing that Indonesian steel will not jeopardize the sales of Malaysia’s local products.
Karyanto Suprih, acting director general of foreign trade at the Trade Ministry, said that the Malaysian Ministry of International Trade and Industry (MITI)—the authority that handles the safeguard investigation—has completed its studies.
“They did not find indications for possible losses or threats of loss resulting from importing products,”Karyanto said in Jakarta on Tuesday, January 26.
According to Karyanto, the decision was announced in the Notice of Negative Preliminary Determination on January 6.
The safeguard investigation over Indonesian HRC began on September 7, 2015 at the request of one of Malaysia’s largest steel producers, Megasteel Sdn. Bhd.
The investigation was based on allegations of domestic industry losses due to an imports surge of HRC products.
Karyanto hopes that the termination of the safeguard investigation can help expand Indonesia’s export share for HRC product to Malaysia. In 2014, Indonesian HRC had a 6.1-percent share of Malaysia’s total imports.
Questions & Answers
Q.What was the specific reason for Malaysia to halt the safeguard investigation into Indonesian HRC?
What was the specific reason for Malaysia to halt the safeguard investigation into Indonesian HRC?
Malaysia's Ministry of International Trade and Industry (MITI) stopped the investigation after assessing that Indonesian steel would not harm the sales of Malaysia’s local products. Their studies found no indication of possible losses or threats from importing these products.
Q.When did Malaysia officially announce its decision regarding the Indonesian HRC safeguard investigation?
When did Malaysia officially announce its decision regarding the Indonesian HRC safeguard investigation?
The decision was announced on January 6 in the 'Notice of Negative Preliminary Determination'. This followed the completion of studies by Malaysia’s Ministry of International Trade and Industry (MITI).
Q.Which Malaysian company initiated the safeguard investigation against Indonesian HRC imports?
Which Malaysian company initiated the safeguard investigation against Indonesian HRC imports?
The safeguard investigation began at the request of Megasteel Sdn. Bhd., identified as one of Malaysia’s largest steel producers. They alleged domestic industry losses due to a surge in HRC imports.
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