Megasteel: Misif’s call to foreign steel players may be an act of subversion

Megasteel's plant in Banting, Selangor. (Pix provided by Megasteel)

KUALA LUMPUR: Megasteel Sdn Bhd has countered the Malaysian Iron and Steel Industry Federation’s (Misif) statement on Tuesday that its petition has no merit, and even launched an attack of its own on Misif’s remark that foreign steel players can file their case to the World Trade Organisation (WTO).

The hot rolled coils (HRC) maker said in a statement that its petition for safeguard duties had merit, having been gazetted by the International Trade & Industry Ministry (Miti).

The petition was “thus deemed to have fulfilled the necessary conditions and requirements including under the WTO and therefore, merits consideration,” it argued.

Megasteel said it had the right to seek trade remedy measures such as anti-dumping and safeguard duties against HRC imports “which are causing serious injury to the local HRC industry which has two producers, Megasteel and Southern Steel Bhd, whose production are adversely affected by such imports.”

The Lion Corp subsidiary recently asked the Government to impose safeguard duties on the imports of HRC at the rate of 40%, on top of the existing 15% import duties on HRC, with the rate being gradually reduced over a four-year period.

Misif reportedly told a press conference on Tuesday that the federation was prepared to take legal action as a last resort to block Megasteel’s petition. 

Megasteel said Misif’s threat to take legal action only served to undermine the Malaysian authorities’ jurisdiction even before any ruling can be made.

“On this note, Misif’s call to foreign steel players to file their case to WTO against Megasteel’s petition not only questions Miti’s authority and the ministry’s right to accept and decide on such petitions, but most alarmingly, raises doubts on Misif’s agenda in exhorting foreign steel players to take action against local steelmakers, which can be seen as an act of subversion towards our national interests and financial stability.

“Similarly, Megasteel reserves the right to take appropriate legal action against relevant parties should its interests be jeopardised,” it said.

On Misif’s contention that Megasteel’s HRC prices are higher than the world average HRC prices, the company pointed out that its prices were guided by the price mechanism sanctioned by Miti and it had never sold above the price allowed under the mechanism.

It also said the sale of HRC to the electronics, white goods and automotive sectors was minimal and, therefore, would not cause the escalation of inflation as alleged by Misif.

“Similar to the safeguard granted for steel plates, there will be certain exclusions (from safeguard action), and we will be discussing with the authorities to allow exclusions especially for export-oriented industries so as not to affect their competitiveness in the export markets,” Megasteel said.