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The iron-ore price depreciation on the world market will not impact existing preliminary anti-dumping duties measures imposed by the Ministry of International Trade and Industry (MITI) or the final investigations currently underway.

An official from the Malaysia Steel Institute told The Malaysian Reserve the main concern is that the selling price of imports must at least match the domestic production selling prices.

“The preliminary anti-dumping measures remained justifiable as we are against dumping activity that has adversely impacting the local steel industry.

“The price of raw material will always keep on fluctuating so it doesn't matter if their manufacturing cost is lower due to cheaper raw materials. The alleged countries still have to sell at the same level of hot rolled coil (HRC) price in Malaysia,” the official said.

Last month, MITI has imposed a provisional anti-dumping duties ranging between 3.15% and 29.37% on imports from China, Indonesia and South Korea. The anti-dumping duties will be effective not more than 120 days from Oct 17, 2014.

The imposition of the anti-dumping duties will be subject to the outcome of the final investigation no later than 120 days from the date of the gazette of the provisional anti-dumping duties.

The move was made following a petition filed by Lion Corp's 79%-owned subsidiary, Megasteel Sdn Bhd, on behalf of the domestic industry producing HRC.

Megasteel, in the petition, alleges that imports of HRC originating in imported from the three countries at a price much lower than the price in their domestic markets. The petitioner claims that this is causing material injury to the domestic industry in Malaysia.

A report by Bloomberg quoted Citigroup Inc as saying that iron ore prices will plummet to less than US$60 per tonne next year as global supply increases and demand remains weak, slashing its quarterly forecasts for 2015 by 23%.

The report said iron ore lost 44% of price value this year as surging supplies from BHP Billion Ltd and Rio Tinto Group in Australia and Brazil's Vale SA created a glut just as China's economy slowed.

• [Editor:Yueleilei]