( ) Page: 1/9 NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 OF THE AGREEMENT ON SAFEGUARDS MALAYSIA. Hot Rolled Steel Plate
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1 G/SG/N/7/MYS/1 G/SG/N/11/MYS/1 12 ecember 2014 ( ) Page: 1/9 Committee on Safeguards Original: nglish NOTIFICTION UNR RTICL 12.4 OF TH GRMNT ON SFGURS FOR TKING PROVISIONL SFGUR MSUR RFRR TO IN RTICL 6 NOTIFICTION PURSUNT TO RTICL 9, FOOTNOT 2 OF TH GRMNT ON SFGURS MLYSI Hot Rolled Steel Plate The following communication, dated 11 ecember 2014, is being circulated at the request of the delegation of Malaysia. Pursuant to rticle 12.4 of the WTO greement 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 rticle 6 of the greement on Safeguards. Products subject to the proposed provisional 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 nnex. The products are classified under the Harmonised System Code (H.S. Code) Number , and 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 ecember However, the imports from developing countries, except the People s Republic of China, Ukraine, the Republic of Korea, the Republic of Indonesia and the Republic of Singapore, is not subjected to the provisional safeguards measure. xpected duration of the provisional safeguard measure The provisional safeguard measure will remain in force for a period not exceeding two hundred (200) days.
2 - 2 - vidence 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 increased 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 The imports have increased 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 xporting 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 conomic Indicators of the omestic Industry Information on the changes in the level of imports and certain economic indicators of the domestic industry that were recorded during is provided below. a. Market Share of Imports 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. omestic Sales omestic Sales espite 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 c. omestic Production escription ctual production 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. ue to the decreasing trend of production, the productivity remained low throughout the POI.
3 - 3 - e. Capacity Utilization 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 Profitability (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. mployment Total Personnel 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.
4 - 4 - NNX XCLUSION LIST OF HOT ROLL STL PLTS No. pplication International standard Grades 1. utomotive JIS G3113 SPH 310 SPH 370 SPH 400 SPH 440 JIS G3134 SPFH 490 SPFH 540 SPFH 590 SPFH 540Y SPFH 590Y 2. oilers and Pressure Vessels S203/S203M S204/S204M S285/S285M S299/S299M S302/S302M S387/S387M Title Hot rolled steel plates, sheets and strip for automotive structural uses Hot rolled high strength steel sheets with improved formability for automobile structural uses,,,, F plates, alloy steel, nickel,,,, F plates, alloy steel, molybdenum,, C Standard specification for sressure vessel plates, carbon steel, low and intermediate tensile strength One grade only plates, carbon steel, manganese-silicon,, C, plates, alloy steel, manganese-molybdenum and manganese-molybdenum-nickel 2, 12, 11, 22, 22L, 21, 21L, 5, 9, 91, 911 plates, alloy steel, chromium-molybdenum S515/S515M S516/S516M S533/S533M S537/S537M S542/S542M S553/S553M S738/S738M S841/S841M 203/203M 204/204M 285/285M-C 60, 65, 70 plates, carbon steel, for intermediate and higher temperature service 60, 65, 70 plates, carbon steel, for moderate and lower temperature service Type,, C, Class 1, 2, 3 plates, alloy steel, quenched and tempered, manganese-molybdenum and manganesemolybdenum-nickel Class 1, 2, 3 plates, heat treated, carbon-manganese-silicon steel Type,, C,, Class 1, 2, 3, 4 and 4a plates, alloy steel, quenched and tempered chromium-molybdenum Type I, II plates, alloy steel, quenched and tempered 8 and 9 percent nickel,, C plates, heat treated, carbon-manganese-silicon steel for moderate and lower temperature service,, C Standard specification for steel plates for pressure vessel, produced by the Thermo- Mechanical Control Process (TMCP),,,, F plates, alloy steel, nickel,,,, F plates, alloy steel, molybdenum,, C plates, carbon steel, low and intermediate tensile strength.
5 /299M 302/302M 387/387M 515/515M 516/516M 533/533M 537/537M 542/542M 553/553M 738/738M 841/841M S N S N G3103 (S) JIS G3115 (SPV) JIS G3118 (SGV) G3119 (SV) G3120 (SQV) G 3126 (SL) One Grade only plates, carbon steel, manganese-silicon,, C, plates, alloy steel, manganese-molybdenum and manganese-molybdenum-nickel 2, 12, 11, 22, 22L, 21, 21L, 5, 9, 91, 911 plates, alloy steel, chromium-molybdenum 60, 65, 70 plates, carbon steel, for intermediate and higher temperature service 60, 65, 70 plates, carbon steel, for moderate and lower temperature service Type,, C, Class 1, 2, 3 plates, alloy steel, quenched and tempered, manganese-molybdenum and manganesemolybdenum-nickel Class 1, 2, 3 plates, heat treated, carbon-manganese-silicon steel Type,, C,, Class 1, 2, 3, 4 and 4a plates, alloy steel, quenched and tempered chromium-molybdenum Type I, II plates, alloy steel, quenched and tempered 8 and 9 percent nickel,, C plates, heat treated, carbon-manganese-silicon steel for moderate and lower temperature service,, C Standard specification for steel plates for pressure vessel, produced by the Thermo- Mechanical Control Process (TMCP) P235GH P265GH P295GH P355GH P275 NH P275 NL1 P275 NL2 P355 NH P355 NL1 P355 NL2 P460 NH P460 NL1 P460 NL2 S 450M S 480M SPV450 SPV 490 SGV 450 SGV 480 SV 1 SV 1 SV 2 SV 3 SQV 1 SQV 1 SQV 2 SQV 2 SQV 3 SQV 3 SL 235 SL 235 SL 325 Flat product made of steels for pressure purpose. Part 2: non-alloy and alloy steel with specified elevated temperature properties Flat product made of steels for pressure purpose. Part 3: weldable fine grain steel, normalized Carbon steel and molybdenum alloy steel plates for boilers and other pressure vessels Steel plate for pressure vessel for intermediate temperature service Carbon steel plates for pressure vessels for intermediate and moderate temperature service Manganese-molybdenum and manganesemolybdenum-nickel alloy steel plates for boilers and other pressure vessels Manganese-molybdenum and manganesemolybdenum-nickel alloy steel plates for quenched and tempered pressure vessels Carbon steel plates for pressure vessels for low temperature service
6 For offshore and structural use (oil and gas) G4109 (SCMV) N N N SL 325 SL 360 SL 410 SCMV 1 SCMV 2 SCMV 3 SCMV 4 SCMV 5 SCMV 6 S355N S355NL S420N S420NL S460N S460NL S355M S355ML S420M S420ML S460M S460ML S355J2W S355J2WP S355K2W Chromium-molybdenum alloy steel plates for boilers and pressure vessels Normalized/normalized roller weldable fine grain structural steels Thermo mechanically rolled weldable fine grain structural steels Structural steels with improved atmospheric corrosion resistance- weathering steel N STM - 514/514M S460Q S460QL S460QL1 S500Q S500QL S500QL1 S550Q S550QL S550MQL1 S620Q S620QL S620QL1 S690Q S690QL S690QL1 S890Q S890QL S890QL1 S960Q S960QL Grade Grade Grade Grade F Grade H Grade P Grade Q Grade S Flat products of high yield strength structural steels in the quenched and tempered condition Standard specification for high yield strength, quenched and tempered alloy steel plate suitable for welding SM S633/S633M Grade Grade C Grade Grade Standard specification for normalized high strength low alloy structural steel plates SM S514/S514M Grade Grade Grade Grade F Grade H Grade P Grade Q Grade S Standard specification for high yield strength, quenched and tempered alloy steel plate suitable for welding
7 For line pipe for oil and gas 5. For offshore structural use (oil and gas) 6. For ship building industry N10225 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 steel for fixed offshore structures PI 5L L245/ 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 PI 2H GR.50 Specification for carbon manganese steel plate for offshore platform tubular joints PI 2W GR.60 Specification for steel plates for offshore GR.50T structures produced by Thermo-Mechanical GR.60 Control Processing (TMCP) S H32 H36 H40 H32 H36 H40 H32 H36 H40 Q51 Q70 Q43 Q51 Q56 Q63 Q70 Q51~FQ70 merican ureau of Shipping
8 - 8 - V LR NV GL H32 H36 H40 H32 H36 H40 H32 H36 H40 H32 H36 H40 H32 H36 H40 H32 H36 H40 H40 H40 H ~FQ70 H36 H40 H36 H40 H36 H40 ureau Veritas Lloyd's Register et Novske Veritas German Lloyd's Register of Shipping
9 For corrosion resistance plate 8. Machine structural use 9. ngineering application (dump truck, bucket, hopper, Grizzly bar etc.) 10. Lifting equipment & automotive (truck chassis, cranes and earthmoving machines) NK JIS G3114(SM) JIS G3125 (SP) H32 H36 H40 H32 H36 H40 H32 H36 H40 SM400W SM400W SM400CW SM400P SM400P SM400CP SM490W SM490W SM490CW SM490P SM490P SM490CP SM570W SM570P SP-H SP-C Nippon Kaiji Kyokai Hot rolled atmospheric corrosion resisting steels for welded structures Superior atmospheric corrosion resisting rolled steel STM 242/242M One grade only Standard specification for high yield strength low alloy structural steel STM 588/588M JIS G4051 N ; S690 QL N ; S890 QL N ; S600 MC N ; S700 MC Grade Grade Grade C Grade K S45C S50C Hardox 400 Hardox 450 Hardox 500 Weldox 700 Weldox 900 Weldox 1100 omex 600 omex 700 Standard specification for high yield strength low alloy structural steel with 50Ksi (345Mpa) minimum yield point to 4in. (100mm) thick Carbon steel for machine structural use dvanced high strength abrasion resistant steel with a nominal hardness of 400 HW dvanced high strength abrasion resistant steel with a nominal hardness of 450 HW dvanced high strength abrasion resistant steel with a nominal hardness of 500 HW dvanced high strength structural steel with a yield strength of Mpa dvanced high strength structural steel with a minimum yield strength of up to 900 Mpa dvanced high strength structural steel with a minimum yield strength of 1100 Mpa dvanced high strength hot rolled, extra high strength, cold forming, with a minimum yield strength of 600 Mpa dvanced high strength hot rolled, extra high strength, cold forming, with a minimum yield strength of 700 Mpa
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Heavy Plate Specification Low Alloy 12Mn, Q295 A572MGr.42 SS490 S275JR St44-3 43A Fe430A High ( A, B ) S275N Strength A633MGr.A S275NL 43B Fe430B Steel Plate 16Mn 14MnNd A572MGr.50 SM490A S355JR St52-3
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