JANUARY 2021

THE STEELNOTICEBOARD

BILLETREBARSTEEL WIRE ROD

RM2519

RM2688

RM2775SCRAP

IRON ORE

RM1896

RM685

TRADE PERFORMANCE
Malaysia Trade Performance, January-December 2020
Malaysia’s Iron and Steel trade value in December was recorded at RM4.2billion, declined by 8.6 percent compared to RM4.6 billion
recorded in December 2019. However, the trade balance has narrowed by 87.8 percent from trade deficit RM580million in 2019 totrade deficit of RM70million in 2020.
Malaysia Trade Performance of Iron & Steel Industry
Dec 2020:Month Trade Value
Total trade value of the iron and steel products in 2020 has
RM4.2billion
8.6%
slipped by 10 percent from RM53.1billion in 2019 toDec2019:
M-o-Mchange
RM47.8billion in 2020. However, significant improvement by
RM4.6billion
92.3 percent as recorded on the trade balance from trade deficit
Dec 2020:
of RM9.2billion in 2019 to trade deficit of RM0.71billion in 2020
Month Balance of(RM70million)
due to higher export of long steel products to China.
Trade87.8 %
Trade Deficit
M-o-M change
Dec 2019:
China remained as main export destination and strategic trading(RM580million)
partner for Malaysia in 2020, Malaysia’s export of the Iron andTrade Deficit
Steel products to China recorded at RM9.6billion, compared toJan-Dec 2020:
YTD Trade Value
RM4.0billion of total import from China, a trade surplus ofRM47.8billion
10.0 %
RM5.6billion for 2020.
Jan-Dec 2019:
Y-o-Y change
Based on China’s General Administration of Customs data, China
RM53.1billion
became a net of importer of semi-finished and finished steel
Jan-Dec 2020:
YTD Balance ofover June-September as well as in November of 2020 which had(RM0.7billion)
92.3 %
Tradenot been seen over a decade due to post COVID-19 pandemic
Trade Deficit
Y-o-Ychangerecovery in the country. The strong demand from China reduced
Jan-Dec 2019:
the impact of COVID-19 pandemic on global steel mills, by(RM9.2billion)
absorbed steel supplies from many countries, including
Trade Deficit
Malaysia.
Data Source: MSI/MATRADE/DOSM

MSI WITH YOUMEETING TO DISCUSS INVESTMENT OF BAHAGIAN DASAR SEKTORAL (BDS) TASKS
A meeting to discuss divestment of BDS tasks was held on
7/1/2021. Sectoral policy division is now renamed as
Industrial Development Division (BPI) has undergone a
restructuring exercise which took effect on 1/1/2021 withthe aim to ensure the division remains focused atdelivering its agreed KPIs for 2021 based on its resources.
In order to operationalise this, divestment of non-coretasks as agreed by KSU will be undertaken where thesetasks should be submitted either outside of BPI under amore appropriate division within MITI and its agencies.
MSI is being tasked to assume the role of secretariat for
WG, TC and MSC only. The structure of WG, TC and MSC
remain the same.

PRA MESYUARAT MAJLIS TINDAKAN PEMBANGUNAN KEMENTERIAN (MTPK) BIL.1/2021
The Pra Mesyuarat Majlis Tindakan Pembangunan Kementerian MTPK Bil.1/2021 was held on 15 January 2021. The
meeting discussed on the preparation to update the Top Management of MITI on the implementation status of all
Development Projects managed by MITI and agencies in 2020. The MTPK Bil.1/201 is expected to be conducted byend of January 2021.

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2WEBINAR – ASSESSING COST – EFFECTIVENESS OF NTMS – A TOOLKITThe webinar organised by German Cooperation (GIZ), Government of Kenya, Economic Research Institute for ASEAN
and East-Asia (ERIA) and Organization for Economic Co-Operation (OECD) was held on 27 January 2021. The objectiveof this webinar is to share the toolkit experience to assess cost-effectiveness of NTMs based on a pilot project in theKenyan cotton, textiles and apparel (CTA) value chain, by reviewing NTMs applied to cotton lint imports in Kenya. In
the Kenyan experience, it is reported that the use of toolkit has resulted in recommendations to simplify importregulations and procedures and reduce trade costs without compromising public policy objectives
on the implementation of NTMs.
Expert Panelists from UNCTAD, Government of Kenya, OECD and the Economic Research Institute for ASEAN and East
Asia (ERIA) presented their views – notably the ERIA panelist shared the toolkit that is being advocated inthe ASEAN region. During the Q&A session, besides cost analysis, it was proposed that the idea of benefits should beconsidered as part of toolkit use. However it was noted that this may not be possible at current pilot projectstage due to the difficulty in quantifying and in attribution specifically to the NTM per se. As a final note, both theprivate sector (generally cost conscious on compliance) and the public sector (regulators are more interested insafety and health) will need to work together/collaborate, with their differences of interests, as the key to thesuccess for the toolkit implementation.

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MSI TRU
ONLINE DISCUSSION WITH LAKSANA ON REPORTING REQUIREMENTS FOR RESKILLING &UPSKILLING PENJANA PROGRAMMEMITI chaired the Online Discussion with LAKSANA on Reporting Requirements for Reskilling & Upskilling PENJANA
Programme on 18 January 2021. The objective is to ensure clear understanding on what is expected in monitoring
and reporting for implementation of programmes by implementation agency. MSI has presented our feedbacks toLAKSANA and sought clarification from LAKSANA on job placement implementation related to MSI’s programmei.e. Enhanced Employability of Unemployed Workers and New Graduates in The Iron and Steel Industry.

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4STEEL FACTS

STAINLESS STEEL PRICES

Source: https://agmetalminer.com/metal-prices/stainless-steel/[AUTHOR NAME]

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EVENTS HIGHLIGHT[AUTHOR NAME]

6STEEL NEWS
1. MITI revises anti-dumping duties on cold rolled coils from Vietnam
Date: 23 January 2021
Source: https://www.theedgemarkets.com/article/miti-revises-antidumping-duties-cold-rolled-coils-vietnam

KUALA LUMPUR (Jan 23): The government has revised antidumping duties imposed on imports of cold rolled coils of alloy andnon-alloy steel originating from Vietnam.
In a statement today, the Ministry of International Trade andIndustry (MITI) said the revised anti-dumping duties will beeffective from Jan 24 to May 23, 2021.
The duties for products imported from Vietnam will now range
from 7.42% to 33.7%.
On July 28, 2020, MITI initiated an administrative review
concerning anti-dumping duties imposed based on a petition filed by Mycron Steel CRC Sdn Bhd on behalf of thedomestic industry producing the like products.
"The petitioner claimed that there is a substantial change in the dumping margin for the imports of subject merchandise
originating or exported from Vietnam since the imposition of anti-dumping duties on imports of cold rolled coils of alloyand non-alloy steel on May 8, 2019.
"In accordance with the Countervailing and Anti-Dumping Duties Act 1993 and the Countervailing and Anti-Dumping
Duties Regulations 1994, the Government has completed the administrative review and determined that the dumping
margin has changed for the imports of subject merchandise originating or exported from Vietnam," it said.
MITI said the Royal Malaysian Customs Department will enforce the collection of anti-dumping duties.

2. US and Canadian rig counts rise again week-on-week
Date: 22 January 2021
Source:https://www.steelorbis.com/steel-news/latest-news/us-and-canadian-rig-counts-rise-again
week_on_week-1182802.htm

Baker Hughes has reported that for the week ending January 22, the US rotary rig count increased by five to 378 rigs.
The number of rigs drilling for gas increased by three to 88, while the number of rigs drilling for oil increased by two to289. The overall rig count is now down by 416 rigs in a year-on-year comparison.
Meanwhile, the Canadian rig count is now down by 72 rigs compared to the same week a year ago.

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73. Iron ore price rallies on record-breaking China steel output
Date: 18 January 2021
Source: https://www.mining.com/iron-ore-price-at-new-near-decade-high/Iron ore prices continued to climb on Monday as data revealed
record-breaking steel production numbers in China, which forges
more steel than the rest of the world combined.
According to Fastmarkets MB, benchmark 62% Fe fines imported
into Northern China (CFR Qingdao) were changing hands for$174.07 per tonne, setting a new near-decade high.
Year-to-date, the steelmaking raw material has enjoyed 8.5%gains after an 80% rise last year. The benchmark hit an all-timehigh of $191.70 in February 2011.
The high-grade Brazilian index (65% Fe fines) also advanced to anear record high of $195.30 a tonne, after rising about 78% over the past year.
Iron ore’s stellar run was largely due to the rising industrial demand from China. Last year, the country produced arecord 1.05 billion tonnes of steel, a breakthrough as it is the first time the 1 billion mark has been exceeded.
Customs data last week showed that China imported 1.17 billion tonnes of iron ore, beating its previous record of 1.075
billion tonnes in 2017 despite a decline in December shipments.
However, iron ore may lose steam in 2021 on recovering supply from top exporters Australia, Brazil and South Africa,
as early signs that Chinese steel output is likely to stabilize this year, according to industry analyst Clyde Russell.
China’s steel demand is likely to rise moderately this year, and probably not by more than the supply of iron ore cankeep up with, Russell said.

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8ABOUT MSIMalaysia Steel Institute (MSI) is an industry driven enterprise supported and funded by the Ministry of International Trade &Industry (MITI) on shared responsibility basis with the industry. The main objectives of MSI are to promote and develop thecompetitiveness, resilience and sustainability of the Malaysian iron and steel industry; to provide advisory services and to carryout commission or promote the study of scientific, technology and economic aspects of iron and steel industry development in
Malaysia; and to promote iron and steel product standardisation and utilisation within Malaysia. For more information, pleasevisit www.malaysiasteelinstitute.com and follow us on Facebook, Twitter, LinkedIn and YouTube channel.
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50480 Kuala Lumpur

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