Malaysian Market Opportunities

2014-11-28

China - Malaysia bilateral trade volume topped $100 billion mark in 2013, reaching $ 106.08 billion, an increase of 11.9% over 2012, which made Malaysia the third Asian country which enjoys an volume of over $100 billion trade with China, following Japan and South Korea. And Malaysia has been China's largest trading partner for six consecutive years among ASEAN countries. In the first eight months of 2014, China exported 1,390,000 tonnes of steel products to Malaysia, taking up 2.44% of its total exports, statistics shows.

Local professional organizations predicted that Malaysia's economic growth would speed up to 5.9% in 2014 from 2013's 4.7%, and the construction industry may grow at a pace of 15% in 2014, compared with 12% in 2013.

Chinese steel products have an obvious price advantage in Malaysia. For instance, the price of hot-rolled coil produced by Malaysia's largest manufacturer-MEGASTEEL, which has an annual capacity of 3,000,000 tonnes, is about $200/t higher than Chinese HRC.

However, Malaysia frequently launches anti-dumping investigations against steel sheets from China, including rebar, hot-rolled coil, cold- rolled coil and galvanized steel coil. And Malaysia never gives import certificates to products which domestic factories are capable of producing. For Chinese steel enterprises, the only choice to successfully enter Malaysian market is to make shipments of high-end products which are beyond Malaysian mills’ reach.

The second stop of the exhibition tour will be in Myanmar, in December, 2014.