Business

Saturday September 5, 2009

Higher prices likely for steel and iron-based products

By STEPHEN THEN


MIRI: Products that use steel and iron as raw materials may see an increase in price from mid-October, according to the International Trade and Industry Ministry.

Starting Oct 13, the Government will implement the mandatory screening on imported iron and steel items.

Deputy Minister Datuk Jacob Dungau Sagan said these overhead (screening) costs might eventually end up being added onto the costs of the end-products, and consumers might have to bear the cost.

“The mandatory screening will be carried out at all major ports in the country, like Port Klang, Johor Port, Kuching Port and Kota Kinabalu Port.

“This screening is vital as it will ensure that all the steel and iron products are of high standard,” he told a press conference yesterday.

He said Sirim Bhd would charge RM2,000 for every 100 tonnes screened.

Asked if the action meant Malaysia suspected that certain importers of iron and steel had been bringing in sub-standard quality raw materials, Sagan said that was a possibility as it had happened before.

Malaysia imports substantial amount of steel and iron raw materials, which are vital for the construction industry, from South Korea, Japan, Taiwan and China.

  • E-mail this story
  • Print this story