CSC Steel could benefit from new anti-dumping probe

It noted that CSC Steel

KUALA LUMPUR: Maybank Investment Bank Research said CSC Steel Holdings Bhd could benefit from the new probe into imports of galvanised iron (GI) from China and Vietnam,should the preliminary determination be affirmative.

The research house said the announcement by the Ministry of the International Trade and Industry (MITI) to initiate the probe after receiving a petition from a domestic producer, had come as a surprise.

“The investigation comes as a positive surprise to the market, we believe it will benefit the domestic producers of GI should a preliminary determination be affirmative,” it said in a note on Thursday.

Currently, the existing anti-dumping duties imposed on cold-rolled and PPGI range from 3% to 52% for five years. 

As it stands, GI imports have been on the rise. For instance, imports accounted for 43.1% of Malaysia’s total GI consumption in 2016, up from 39.7% in 2015. 

The increase resulted in a reduction of CSC’s market share to 14.7% in 2016 from 19.7% in 2015.

The research house said the preliminary determination could be made by late November 2018. 

“Should the government impose an anti-dumping duty at a necessary rate, we expect the full positive impact would only be felt from next year onwards over its duration. 

“It should bring greater stability to ASP and improve the sales volume of local players in the domestic market,” it said.

GI accounted for 39% of CSC’s total production last year.