STEEL NEWS

Steel stocks fall ahead of govt decision on safeguard duties

Several steel stocks fell ahead of a government decision on safeguard duties on some products. 

According to a business weekly, the Ministry of International Trade and Industry (Miti) would make its final decision by April 10 on safeguard duties following complaints about the tax system that was unfavourable to local players. 

Ann Joo Resources Bhd saw its share price fall 20 sen to RM2.29 on volume of 3.39 million yesterday, while Southern Steel saw its counter drop 17 sen to RM1.25 on volume of 1.3 million. 

Lion Industries Corp Bhd’s shares fell 16 sen to close at 66.5 sen on volume of 27.52 million. 

Similarly, Malaysia Steel Works (KL) Bhd’s shres fell four sen to 77 sen, and Leader Steel Holdings Bhd’s shares shed two sen to 41 sen. 

It was reported that the Malay Contractors Association Malaysia (PKMM) wrote a letter to Miti last month protesting safeguard duties on steel concrete reinforcing bar (rebar) imports. 

PKMM argued in the letter that the preliminary safeguard duties imposed last September had pushed up rebar prices and squeezed its 20,000 members, mainly comprising small and medium contractors. 

It was reported that Master Builders Association Malaysia (MBAM) and several listed construction firms had also registered their protest on safeguard duties. 
According to the same report, the Steel Wires Association of Malaysia had also written to Miti over the impact of safeguard duties on steel wire rod (SWR) and deformed bar-in-coil (DBIC). 

To recap, Miti made a preliminary determination last September to impose provisional safeguard duties of 13.42% on rebar imports, and 13.9% on SWR and DBIC imports, following petitions filed by the Malaysian Steel Association that surging imports of these steel products had severely impacted local producers. 
These preliminary duties were for 200 days from Sept 26 for rebar steel, and from Sept 27 for SWR and DBIC. 

Miti was expected to make its final decision on whether the safeguard duties would be extended by April 10.