Malaysian Steel Company Ask for Government Assistance

According to a report by the New Straits Times, the Malaysian Iron and Steel Industry Federation has asked the government to investigate scrap dealers’ claim that steel mills are not buying scrap metal and this has resulted in huge stockpiles.

"The federation views ferrous metal is a resource and feedstock for a major industry and will be best reserved for the national industry despite the slower production.

"The steel mills have not stopped buying scrap from local sources but have more or less maintained purchasing levels," it said.

As such, the federation is asking for investigations into the scrap dealers’ claim, it said in a statement.

International Trade and Industry Minister Tan Sri Muhyiddin Yassin announced the lifting of the export ban on scrap metal last week to enable scrap dealers to clear their stock that has piled up over the months.

As a whole, Malaysia’s steel industry uses about five million metric tons of scrap metal a year and between 65-70 percent of the requirement are imported a year, while the balance sourced from local scrap suppliers.