Malaysia opens AD probe into Indonesian CR stainless steel

Malaysia has launched an anti-dumping investigation into imports of cold-rolled stainless steel in coils, sheets or any other form from Indonesia.

The probe was initiated by the Ministry of Investment, Trade and Industry (MITI) after Bahru Stainless Sdn. Bhd., Malaysia's sole producer of cold-rolled stainless steel, lodged a petition on behalf of the Malaysian industry.

Bahru Stainless alleges that the subject merchandise is being dumped in Malaysia, causing material injury to the domestic industry producing the like product, and has submitted evidence that imports from Indonesia have increased in absolute quantity.

The petitioner alleges that as an effect of such dumping, the Malaysian industry has suffered reduced market share, price undercutting, price depression, lower sales and turnover, lower production and capacity utilization, declining employment and wages, and rising inventories.

The subject products fall under the Harmonized System Code and ASEAN Harmonized Tariff Nomenclature 7219.31.00 00, 7219.32.00 00, 7219.33.00 00, 7219.34.00 00, 7219.35.00 00, 7219.90.00 00, 7220.20.10 00 and 7220.20.90 00.

According to Statistics Indonesia data, Indonesia shipped 284,922 tonnes of stainless steel products to Malaysia last year and 153,081 tonnes in this year's January-July period.

MITI has invited interested parties to request a questionnaire by September 24 and to submit responses by October 9.

The past few years have been challenging for Bahru Stainless which operates a 300,000 tonnes/year integrated plant in Johor Bahru at the southern tip on the Malaysian Peninsula.

Formerly a subsidiary of Spanish stainless giant Acerinox, the company ceased operations in May 2024 due to declining profits and was sold to Malaysia's Worldwide Stainless Sdn. Bhd. in November 2024 for $95 million. Operations resumed in December 2024.

This is not the first time Malaysia has targeted unfair stainless CR imports. In February 2018 – again following a complaint from Bahru Stainless – MITI decided to impose AD duties on CR stainless steel imported from China, South Korea, Taiwan and Thailand, as Mysteel Global reported.

Written by Tiffany Hou, houtianhui@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com