Posted on 03 Jun 2016
Prices of steel bars may go out of control if the Government decides to impose safeguard measures on steel products, warned the Master Builders Association Malaysia (MBAM).
Its president Matthew Tee said the prices of steel bars in Malaysia were already the highest among Asean countries.
Steel mills in Malaysia also enjoyed subsidy on electricity tariff, and should not be selling at prices higher than other countries in the region, he said.
Tee said the price of steel bars had increased from about RM1,500 per tonne in January this year to about RM2,500 per tonne now.
The sudden rise in steel prices over such a short period was not justified, even with the greater demand from China, he said.
“By looking to our neighbouring countries, it strengthens the claim that the sudden rise in steel price is unprecedented and unwarranted.
“For example, in Singapore, NatSteel is selling at around RM1,700 per tonne.
“Although MBAM is not against profit-making by the steel millers, MBAM hopes they will not engage in excessive profiteering that can jeopardise other industries including the construction industry,” he said in a statement yesterday.
Tee was commenting on the notice of initiation of investigation issued by the Government recently to determine safeguard measures with regard to several categories of imported steel products.
The investigation is to determine whether there is serious injury caused by the increased imports of the products as well as to examine the need for safeguard measures.
Tee urged the Government to look at a sustainable, long-term approach as the local producers should not be protected for their “inability to be competitive” even with various protection measures already present in the industry.
“The financial health of the steel industry has suffered from inefficient production, fuelled by government support of high-cost local capacity and market intervention in the form of quotas, subsidies and tariffs,” he said.
He said the authorities should consider the potential impact of such safeguard measures and how it would affect other industries including the construction industry.
