G/SG/N/7/MYS/1
G/SG/N/11/MYS/1
12 December 2014
(14-7254)  Page: 1/9
Committee on Safeguards  Original: English
 
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON SAFEGUARDS 
BEFORE TAKING A PROVISIONAL SAFEGUARD MEASURE  
REFERRED TO IN ARTICLE 6 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
MALAYSIA  
Hot Rolled Steel Plate 
The following communication, dated 11 December 2014,  is being circulated at the request of the 
delegation of Malaysia.  
_______________ 
  
Pursuant to Article 12.4 of the WTO Agreement on Safeguards, Malaysia hereby notifies the 
Committee on Safeguards of the results of its preliminary determination on the investigation on the increased imports of hot rolled steel plates product before taking a provisional safeguard 
measure under Article 6 of the Agreement on Safeguards.   
 Products subject to the proposed prov isional measure and the description  
 
Product subject to the proposed provisional safeguard measure hot rolled steel plate products of 
iron or non-alloy steel and other alloy steel, of a width of 600 millimetres or more, hot rolled, not clad, plated or coated, of thickness between 6 millimetres to 75 millimetres, and specifically 
excluding the hot rolled plates products which applications, international standards, grades and 
titles are specified in the Annex.   
The products are classified under the Harmonised  System Code (H.S. Code) Number 7208.51.000, 
7208.52.000 and 7225.40.000. The H.S Code Number is only for information and shall have no binding effect on the classification of the products.  
Proposed provisional safeguard measure 
 It is proposed that provisional safeguard duty be imposed at the rate of 23.93% of CIF price 
for 200 days in relation to increased imports of the product concerned, which is considered to be 
the minimum required to protect the interest of domestic industry. The provisional safeguard measure will come into force on 14 December 2014. 
 
However, the imports from developing countries, except the People’s Republic of China, Ukraine, the Republic of Korea, the Republic of Indonesia an d the Republic of Singapore, is not subjected to 
the provisional safeguards measure.  
 
Expected duration of the provisional safeguard measure  
The provisional safeguard measure will remain in force for a period not exceeding two hundred 
(200) days.  G/SG/N/7/MYS/1 • G/SG/N/11/MYS/1 
 
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  Evidence of Serious Injury or threat  thereof caused by increased imports 
 In the preliminary analysis, the investigating authority has made a preliminary determination after examining all relevant factors that increase in imports of the product concerned from a number of 
countries has caused serious injury and also threat of serious injury to the domestic industry.  
 There is evidence of a sudden and significant increase in imports in both absolute and relative 
terms. The imports of the product concerned incr eased in imports of the product concerned to 
Malaysia by 13.45% from 257,591MT in Year 1 to 292,238MT in Year 2 and continued to increase by 25.64% in Year 2013. The imports have increa sed sharply by 42.54% from Year 1 to Year 3. 
In relative term, it is observed that the proportion of total imports in relation to domestic 
production continually increased from 164% in 2011 to 241% and 318% in 2012 and 2013 
respectively. In 2013, the relative imports to domestic production were recorded at 318%, substantially surged of 241% in the preceding year. 
 
Major Exporting Members of Imports of the Products Involved  
Japan, People’s Republic of China, Republic of Korea, Ukraine, Republic of Indonesia and the 
Republic of Singapore are the major suppliers of the imported product in 2011-2013.  Economic Indicators of the Domestic Industry 
 
Information on the changes in the level of imports and certain economic indicators of the domestic industry that were recorded during 2011 - 2013 is provided below. 
 
a. Market Share of Imports 
 
Item 2011 2012 2013 
Market Share 62% 66% 71% 
 
The domestic industry has lost its market share to imports of the product concerned as can be 
evidenced by a continual increase of the market  share of imports. In 2011, market share of 
imports accounted for 62% of the domestic market but continually rose to 66% and 71% in 2012 and 2013 respectively.   
b. Domestic Sales 
 
Item 2011 2012 2013 
Domestic Sales 100 99 105 
 
Despite the increase in sales volume, the sales revenue continually declines. Overall, the domestic 
sales decreased by 1.41% in 2012 and increased by 6.35% in 2013.   
c. Domestic Production 
 
Description 2011 2012 2013 
Actual production  100 77 73 
 
The domestic production continually declined in Year 2 and Year 3 by 23% and 5% respectively. 
 
d. Productivity 
 
The productivity level is measured on production (MT) against the machine hour. The machine 
hour reduced by 25% in Year 1 to Year 2 and further dropped by 10% in Year 3. Due to the decreasing trend of production, the productivity remained low throughout the POID. 
 G/SG/N/7/MYS/1 • G/SG/N/11/MYS/1 
 
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  e. Capacity Utilization 
 
Item  2011 2012 2013 
Capacity Utilization (%)  26% 20% 19% 
 
With the decrease in the domestic production, the capacity utilization rate continually fell from 26% to 19% over the injury period.  
f. Profit/Loss 
 
 Item 2011 2012 2013 
Profitability 100 12 (20) 
 
The profitability of the domestic industry has deteriorated to such a situation that it is now suffering financial losses. The trend dropped in Year 2 and further declined to a loss in Year 3. The 
domestic industry profitability steeply deteriorated as it suffered financial losses clearly showing 
the adverse effect of increased imports.  
g. Employment 
 
Item 2011 2012 2013 
Total Personnel 100 93 107 
 
The level of employment has been stable throughout the period of investigation. 
 CONCLUSION 
 
In the preliminary analysis, the investigating authority has concluded that the product concerned is being imported into Malaysia in quantities that have increased suddenly, sharply and significantly 
in the recent past in both an absolute term and a relative term to domestic production. 
Furthermore, the existence of the negative developments in the economic indicators of the domestic industry such as a decline in domestic market share contributing to a decrease in domestic production, a decrease in domestic sales and financial losses, suggests that the domestic 
industry is suffering from the serious injury caused by the increased imports of the product 
concerned.  
Therefore, bearing in mind that a sudden and significant increase in the imports of the product 
concerned could negatively affect the situation of the domestic industry, the provisional safeguard measure is proposed to eliminate any possible uncertainty that could come out during an on-going 
investigation for determining the need for the imposition of definitive safeguard measure. The 
domestic industry is at risk of having to suspend their business activities if provisional safeguard measure is not quickly adopted.  
 
  
 G/SG/N/7/MYS/1 • G/SG/N/11/MYS/1 
 
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  ANNEX 
EXCLUSION LIST OF HO T ROLLED STEEL PLATES 
No. Application International 
standard Grades Title 
1. Automotive JIS G3113 SAPH 310  
SAPH 370  SAPH 400  SAPH 440 Hot rolled steel plates, sheets and strip for 
automotive structural uses 
JIS G3134 SPFH 490 
SPFH 540 
SPFH 590 
SPFH 540Y SPFH 590Y Hot rolled high strength steel sheets with 
improved formability for automobile structural 
uses 
2.  Boilers and 
Pressure Vessels ASME –  
SA203/SA203M A, B, D, E, F Standard spec ification for pressure vessel 
plates, alloy steel, nickel 
ASME – SA204/SA204M A, B, D, E, F Standard spec ification for pressure vessel 
plates, alloy steel, molybdenum 
ASME – SA285/SA285M A, B, C Standard specific ation for sressure vessel 
plates, carbon steel, low and intermediate tensile strength 
ASME –  SA299/SA299M One grade only Standard specification for pressure vessel 
plates, carbon steel, manganese-silicon 
ASME – SA302/SA302M A, B, C, D Standard specif ication for pressure vessel 
plates, alloy steel, manganese-molybdenum 
and manganese-molybdenum-nickel 
ASME – SA387/SA387M 2, 12, 11, 22, 22L, 
21, 21L, 5, 9, 91, 911 Standard specification for pressure vessel 
plates, alloy steel, chromium-molybdenum 
ASME – SA515/SA515M 60, 65, 70 Standard specification for pressure vessel 
plates, carbon steel, for intermediate and higher temperature service 
ASME – SA516/SA516M 60, 65, 70 Standard specification for pressure vessel 
plates, carbon steel, for moderate and lower 
temperature service 
ASME – SA533/SA533M Type A, B, C, D Class 
1, 2, 3 Standard specification for pressure vessel 
plates, alloy steel, quenched and tempered,  manganese-molybdenum and manganese-molybdenum-nickel 
ASME – SA537/SA537M Class 1, 2, 3 Standard specif ication for pressure vessel 
plates, heat treated, ca rbon-manganese-silicon 
steel 
ASME – SA542/SA542M T y p e  A ,  B ,  C ,  D ,  E  
Class 1, 2, 3, 4 and 4a Standard specification for pressure vessel 
plates, alloy steel, quenched and tempered  chromium-molybdenum 
ASME – SA553/SA553M Type I, II Standard specif ication for pressure vessel 
plates, alloy steel, quenched and tempered 8 and 9 percent nickel 
ASME –  SA738/SA738M A, B, C Standard specific ation for pressure vessel 
plates, heat treated, ca rbon-manganese-silicon 
steel for moderate and lower temperature service 
ASME – SA841/SA841M A, B, C Standard specification for steel plates for 
pressure vessel, produced by the Thermo-Mechanical Control Process (TMCP) 
ASTM – A203/A203M A, B, D, E, F Standard spec ification for pressure vessel 
plates, alloy steel, nickel 
ASTM – A204/A204M A, B, D, E, F Standard spec ification for pressure vessel 
plates, alloy steel, molybdenum 
ASTM – A285/A285M-C A, B, C Standard specific ation for pressure vessel 
plates, carbon steel, low and intermediate 
tensile strength. G/SG/N/7/MYS/1 • G/SG/N/11/MYS/1 
 
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  ASTM – 
A299/A299M One Grade only Standard specification for pressure vessel 
plates, carbon steel, manganese-silicon 
ASTM –  A302/A302M A, B, C, D Standard specif ication for pressure vessel 
plates, alloy steel, manganese-molybdenum 
and manganese-molybdenum-nickel 
ASTM – A387/A387M 2, 12, 11, 22, 22L, 
21, 21L, 5, 9, 91, 911 Standard specification for pressure vessel 
plates, alloy steel, chromium-molybdenum 
ASTM – A515/A515M 60, 65, 70 Standard specification for pressure vessel 
plates, carbon steel, for intermediate and higher temperature service 
ASTM – A516/A516M 60, 65, 70 Standard specification for pressure vessel 
plates, carbon steel, for moderate and lower 
temperature service 
ASTM – A533/A533M Type A, B, C, D Class 
1, 2, 3 Standard specification for pressure vessel 
plates, alloy steel, quenched and tempered,  manganese-molybdenum and manganese-molybdenum-nickel 
ASTM – A537/A537M Class 1, 2, 3 Standard specif ication for pressure vessel 
plates, heat treated,  carbon-manganese-silicon 
steel 
ASTM –  A542/A542M T y p e  A ,  B ,  C ,  D ,  E  
Class 1, 2, 3, 4 and 4a Standard specification for pressure vessel 
plates, alloy steel, quenched and tempered  chromium-molybdenum 
ASTM – A553/A553M Type I, II Standard specif ication for pressure vessel 
plates, alloy steel, quenched and tempered 8 and 9 percent nickel 
ASTM – A738/A738M A, B, C Standard specific ation for pressure vessel 
plates, heat treated, ca rbon-manganese-silicon 
steel for moderate and lower temperature service 
ASTM – A841/A841M A, B, C Standard specification for steel plates for 
pressure vessel, produced by the Thermo-Mechanical Control Process (TMCP) 
BS EN – 10028-2 P235GH 
P265GH P295GH P355GH Flat product made of steels for pressure 
purpose. Part 2: non-alloy and alloy steel with specified elevated temperature properties 
BS EN – 10028-3 P275 NH 
P275 NL1 P275 NL2 P355 NH  P355 NL1 P355 NL2  P460 NH  P460 NL1 P460 NL2 Flat product made of steels for pressure 
p u r p o s e .  P a r t  3 :  w e l d a b l e  f i n e  g r a i n  s t e e l ,  normalized 
JIS – G3103 (SB) SB 450M 
SB 480M Carbon steel and molybdenum alloy steel plates 
for boilers and othe r pressure vessels 
JIS – 
JIS G3115 (SPV) SPV450 
SPV 490 Steel plate for pressure vessel for  intermediate 
temperature service 
JIS – JIS G3118 (SGV) SGV 450  
SGV 480 Carbon steel plates for pressure vessels for 
intermediate and moderate temperature service 
JIS – G3119 (SBV) SBV 1A  
SBV 1B  SBV 2  SBV 3 Manganese-molybdenum and manganese-
molybdenum-nickel alloy steel plates for boilers and other pressure vessels 
JIS – G3120 (SQV) SQV 1A  
SQV 1B  SQV 2A  SQV 2B  SQV 3A  SQV 3B Manganese-molybdenum and manganese-
molybdenum-nickel alloy steel plates for  
quenched and tempered pressure vessels 
JIS – G 3126 (SLA) SLA 235A  
SLA 235B SLA 325A  Carbon steel plates  for pressure vessels for low 
temperature service G/SG/N/7/MYS/1 • G/SG/N/11/MYS/1 
 
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  SLA 325B  
SLA 360  SLA 410 
JIS – G4109 (SCMV) SCMV 1  
SCMV 2 SCMV 3  SCMV 4  SCMV 5 SCMV 6 Chromium-molybdenum al loy steel plates for 
boilers and pressure vessels 
3. For offshore and 
structural use (oil and gas) EN10025-3 
 S355N 
S355NL S420N S420NL S460N S460NL Normalized/normalized roller weldable fine 
grain structural steels 
EN10025-4  S355M 
S355ML 
S420M 
S420ML S460M S460ML Thermo mechanically rolled weldable fine grain 
structural steels 
EN10025-5 S355J2W 
S355J2WP S355K2W Structural steels with improved atmospheric 
corrosion resistance- weathering steel 
EN10025-6 S460Q  
S460QL S460QL1 S500Q S500QL S500QL1 S550Q S550QL S550MQL1 S620Q S620QL S620QL1 S690Q S690QL S690QL1 
S890Q 
S890QL S890QL1 S960Q S960QL Flat products of high yield strength structural 
steels in the quenched and tempered condition 
ASTM - A514/A514M Grade A 
Grade B Grade E Grade F 
Grade H 
Grade P Grade Q Grade S Standard specification fo r high yield strength, 
quenched and tempered alloy steel plate suitable for welding  
ASME SA633/SA633M Grade A 
Grade C Grade D Grade E Standard specification for normalized high 
strength low alloy structural steel plates 
ASME SA514/SA514M Grade A 
Grade B Grade E Grade F Grade H Grade P Grade Q Grade S Standard specification fo r high yield strength, 
quenched and tempered alloy steel plate suitable for welding  G/SG/N/7/MYS/1 • G/SG/N/11/MYS/1 
 
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  EN10225 
 S355G10+M 
S355G10+N S355G2+M S355G3+M S355G5+M S355G6+M S355G7+M S355G7+N S355G8+M S355G8+N S355G9+M S355G9+N S420G1+M S420G1+QT S420G2+M S420G2+QT 
S460G1+M 
S460G1+QT S460G2+M S460G2+QT Weldable structural st eel for fixed offshore 
structures 
4. For line pipe for oil 
and gas API – 5L A 
L245/B L290/X42 L320/X46 L360/X52 L390/X56 L415/X60 L450/X65 L485/X70 L555/X80 L625/X90 L690/X100 L830/X120 Specification for line pipe 
5. For offshore 
structural use (oil and gas) API – 2H GR.50 Specification for carbon manganese steel plate 
for offshore platform tubular joints 
API – 2W GR.60 
GR.50T GR.60 Specification for steel plates for offshore 
structures produced by Thermo-Mechanical Control Processing (TMCP) 
6. For ship building 
industry  ABS A 
B D E 
AH32 
AH36 AH40 DH32 DH36 DH40 EH32 EH36 EH40 DQ51 DQ70 EQ43 EQ51 EQ56 EQ63 EQ70 AQ51~FQ70 American Bureau of Shipping 
 G/SG/N/7/MYS/1 • G/SG/N/11/MYS/1 
 
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  BV A 
B D E AH32 AH36 AH40 DH32 DH36 DH40 EH32 EH36 EH40 Bureau Veritas 
 
LR A 
B D E AH32 AH36 AH40 DH32 DH36 DH40 EH32 EH36 
EH40 Lloyd's Register 
 
DNV  A 
B D E AH40 DH40 EH40 A32 A36 A500 A550 A620 D32 D36 E32 E36 E420 E500 E550 
E620 
E690 A500~FQ70 Det Novske Veritas 
 
GL A 
B D E AH36 AH40 DH36 DH40 EH36 EH40 German Lloyd's Register of Shipping 
 G/SG/N/7/MYS/1 • G/SG/N/11/MYS/1 
 
- 9 - 
 
  NK 
 A 
B D E AH32 AH36 AH40 DH32 DH36 DH40 EH32 EH36 EH40 Nippon Kaiji Kyokai 
 
7. For corrosion 
resistance plate JIS G3114(SMA) SMA400AW 
SMA400BW SMA400CW SMA400AP SMA400BP SMA400CP SMA490AW SMA490BW SMA490CW SMA490AP SMA490BP SMA490CP 
SMA570W SMA570P Hot rolled atmospheric corrosion resisting steels 
for welded structures 
JIS G3125 (SPA) SPA-H  
SPA-C Superior atmospheric corrosion resisting rolled 
steel 
ASTM A242/A242M One grade only Standard specification for high yield strength 
low alloy structural steel 
ASTM A588/A588M  Grade A 
Grade B Grade C Grade K Standard specification fo r high yield strength 
low alloy structural steel with 50Ksi (345Mpa) minimum yield point to 4in. (100mm) thick 
8. Machine structural 
use JIS G4051 S45C 
S50C Carbon steel for machine structural use 
9. Engineering 
application (dump truck, bucket, hopper, Grizzly bar etc.) 
  Hardox 400 Advanced high stre ngth abrasion resistant steel 
with a nominal hardness of 400 HBW 
Hardox 450 Advanced high stre ngth abrasion resistant steel 
with a nominal hardness of 450 HBW 
Hardox 500 Advanced high stre ngth abrasion resistant steel 
with a nominal hardness of 500 HBW 
10. Lifting equipment 
& automotive (truck chassis, cranes and earthmoving machines) EN 100 25-6; S690 
QL Weldox 700E Advanced high strength structural steel with a 
yield strength of 650 - 700 Mpa 
EN 100 25-6; S890 QL Weldox 900E Advanced high strength structural steel with a 
minimum yield strength of up to 900 Mpa 
 Weldox 1100E Advanced high strength structural steel with a 
minimum yield strength of 1100 Mpa 
EN 10149-2; S600 MC Domex 600 Advanced high strength hot rolled, extra high 
strength, cold forming,  with a minimum yield 
strength of 600 Mpa 
EN 10149-2; S700 MC Domex 700 Advanced high strength hot rolled, extra high 
strength, cold forming,  with a minimum yield 
strength of 700 Mpa 
 
 
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