Malaysia has launched a probe into alleged dumping of flat-rolled steel products from China, South Korea, and Vietnam after a domestic steel producer filed a complaint about unfair pricing practices that have negatively impacted local manufacturers.

The investigation follows a petition by CSC Steel Sdn Bhd, a 100%-owned unit of CSC Steel Holdings Bhd (KL:CSCSTEL) which claims that imported galvanised iron and steel coils or sheets are being sold below normal market value, causing material injury to the Malaysian steel industry.

The government has determined that sufficient evidence exists to justify an anti-dumping duty investigation, in line with Section 20 of the Countervailing and Anti-Dumping Duties Act 1993, according to a federal government gazette published on Feb 6.

According to the Ministry of Investment, Trade, and Industry (Miti), the alleged dumping has resulted in increased import volumes, reduced market share, declining profitability, price undercutting, and an inability to raise capital among local steel manufacturers.

Miti has invited all stakeholders, including the governments of China, South Korea, and Vietnam, to submit evidence and arguments in response to the allegations.

The investigation will assess whether these imports are harming Malaysia’s domestic industry, and, if confirmed, could lead to the imposition of anti-dumping duties.

There have been other petitions filed by domestic steel-related producers as recently as 2024.

In July last year, the Kuala Lumpur High Court allowed a unit of Mycron Steel Bhd (KL:MYCRON) to challenge the government’s decision to lift anti-dumping duties on certain iron and steel imports.

A month later, in August, Miti initiated an anti-dumping investigation following a petition by Perusahaan Sadur Timah Malaysia (Perstima) Bhd (KL:PERSTIM) alleging that imports of flat-rolled products of iron or non-alloy steel from China, India, Japan, and South Korea were being sold at prices significantly lower than in their home countries.

In October, Miti launched another investigation into alleged dumping of steel wire rods from China, Indonesia and Vietnam, following a petition by Southern Steel Bhd (KL:SSTEEL).

In the Feb 6 gazette, it was stated that Miti will distribute questionnaires to local steel producers, importers, and exporters from the three countries named in the investigation.

Other interested parties have 15 days from the publication of the notice to request participation, while responses must be submitted within 30 days.

According to the gazette, the investigation is part of Malaysia’s broader trade enforcement strategy to protect domestic industries from unfair trade practices. Miti has assured that the probe will adhere to international trade regulations and transparency standards.

For inquiries, Miti has directed stakeholders to contact the Trade Practices Section, and asked them to submit their written submissions and questionnaire responses within the stipulated time frame.