Southeast Asian Steelmakers Call for Urgent Policy Response
The South East Asia Iron and Steel Institute (SEAISI) has raised concerns about surging Chinese steel overcapacity. The group warns it poses growing risks to Malaysia and other ASEAN countries. In early May, SEAISI expressed concern over Malaysia’s lack of action. This comes despite submitting formal reviews and recommendations to the Ministry of Investment, Trade and Industry (MITI).
The Malaysian Iron & Steel Industry Federation (MISIF) has also demanded immediate government intervention. It warns that unchecked imports and unfair trade practices are threatening domestic producers and national steelmaking capabilities.
Chinese Overcapacity Raises Regional Steel Risks
SEAISI highlighted China’s aggressive capacity expansion and foreign investments, including operations within ASEAN borders, as a key risk factor. The group cited global responses—like the UK’s emergency law to seize control of Chinese-owned British Steel—as models for Malaysia to consider.
The Malaysian steel sector continues to suffer from chronic overcapacity, a structural challenge that SEAISI attributes to outdated policy frameworks and weak enforcement. Without swift action, SEAISI warns of serious consequences for national production stability, job security, and the broader economy.
MISIF has urged the Malaysian government to introduce protective measures that would help stabilize the sector and avoid market disruptions. These include safeguards against dumped imports, clearer industrial policy, and better coordination across ministries.
SuperMetalPrice Monitors Regional Steel Developments
At SuperMetalPrice, we closely track ASEAN steel trends, pricing, and policy shifts that impact regional supply chains. Continued overcapacity, especially from China, remains one of the most significant threats to steel markets in Malaysia, Vietnam, and Indonesia.
As SEAISI continues to push for reforms, the outcome may influence steel pricing, trade policy, and investment decisions throughout Southeast Asia.
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