G/SG/N/7/MYS/1

G/SG/N/11/MYS/1
12 December 2014
(14-7254)

Page: 1/9

Committee on Safeguards

Original: English

NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON SAFEGUARDS

BEFORE TAKING A PROVISIONAL SAFEGUARD MEASURE
REFERRED TO IN ARTICLE 6
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2
OF THE AGREEMENT ON SAFEGUARDS
MALAYSIA
Hot Rolled Steel Plate
The following communication, dated 11 December 2014, is being circulated at the request of the
delegation of Malaysia.
_______________
Pursuant to Article 12.4 of the WTO Agreement 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 Article 6 of the Agreement 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 Annex.
The products are classified under the Harmonised System Code (H.S. Code) Number 7208.51.000,
7208.52.000 and 7225.40.000. 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 December 2014.
However, the imports from developing countries, except the Peoples 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.
Expected duration of the provisional safeguard measure
The provisional safeguard measure will remain in force for a period not exceeding two hundred
(200) days.

G/SG/N/7/MYS/1 G/SG/N/11/MYS/1
-2Evidence 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 2013. 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 Exporting Members of Imports of the Products Involved
Japan, Peoples Republic of China, Republic of Korea, Ukraine, Republic of Indonesia and the
Republic of Singapore are the major suppliers of the imported product in 2011-2013.
Economic Indicators of the Domestic Industry
Information on the changes in the level of imports and certain economic indicators of the domestic
industry that were recorded during 2011 - 2013 is provided below.
a.

Market Share of Imports

Item

2011

2012

2013

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.

Domestic Sales
Item
Domestic Sales

2011

2012

2013

100

99

105

Despite 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 2013.
c.

Domestic Production
Description
Actual production

2011

2012

2013

100

77

73

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. Due to the
decreasing trend of production, the productivity remained low throughout the POID.

G/SG/N/7/MYS/1 G/SG/N/11/MYS/1
-3e.

Capacity Utilization
Item

2011

2012

2013

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
Item
Profitability

2011

2012

2013

100

12

(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.

Employment
Item
Total Personnel

2011

2012

2013

100

93

107

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.

G/SG/N/7/MYS/1 G/SG/N/11/MYS/1
-4-

ANNEX
EXCLUSION LIST OF HOT ROLLED STEEL PLATES
No.
1.

Application
Automotive

International
standard
JIS G3113

JIS G3134

2.

Boilers and
Pressure Vessels

ASME
SA203/SA203M
ASME
SA204/SA204M
ASME
SA285/SA285M

Grades
SAPH 310
SAPH 370
SAPH 400
SAPH 440
SPFH 490
SPFH 540
SPFH 590
SPFH 540Y
SPFH 590Y
A, B, D, E, F
A, B, D, E, F
A, B, C

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

Standard specification for pressure vessel

plates, alloy steel, nickel
Standard specification for pressure vessel
plates, alloy steel, molybdenum
Standard specification for sressure vessel
plates, carbon steel, low and intermediate
tensile strength
Standard specification for pressure vessel
plates, carbon steel, manganese-silicon
Standard specification for pressure vessel
plates, alloy steel, manganese-molybdenum
and manganese-molybdenum-nickel

ASME
SA299/SA299M
ASME
SA302/SA302M

One grade only

ASME
SA387/SA387M

2, 12, 11, 22, 22L,

21, 21L, 5, 9, 91,
911

Standard specification for pressure vessel

plates, alloy steel, chromium-molybdenum

ASME
SA515/SA515M

60, 65, 70

Standard specification for pressure vessel

plates, carbon steel, for intermediate and
higher temperature service

ASME
SA516/SA516M

60, 65, 70

ASME
SA533/SA533M

Type A, B, C, D Class
1, 2, 3

ASME
SA537/SA537M

Class 1, 2, 3

ASME
SA542/SA542M

Type A, B, C, D, E
Class 1, 2, 3, 4 and
4a
Type I, II

Standard specification for pressure vessel

plates, carbon steel, for moderate and lower
temperature service
Standard specification for pressure vessel
plates, alloy steel, quenched and tempered,
manganese-molybdenum
and
manganesemolybdenum-nickel
Standard specification for pressure vessel
plates, heat treated, carbon-manganese-silicon
steel
Standard specification for pressure vessel
plates, alloy steel, quenched and tempered
chromium-molybdenum
Standard specification for pressure vessel
plates, alloy steel, quenched and tempered 8
and 9 percent nickel
Standard specification for pressure vessel
plates, heat treated, carbon-manganese-silicon
steel for moderate and lower temperature
service
Standard specification for steel plates for
pressure vessel, produced by the ThermoMechanical Control Process (TMCP)
Standard specification for pressure vessel
plates, alloy steel, nickel
Standard specification for pressure vessel
plates, alloy steel, molybdenum
Standard specification for pressure vessel
plates, carbon steel, low and intermediate
tensile strength.

ASME
SA553/SA553M

A, B, C, D

ASME
SA738/SA738M

A, B, C

ASME
SA841/SA841M

A, B, C

ASTM
A203/A203M
ASTM
A204/A204M
ASTM
A285/A285M-C

A, B, D, E, F
A, B, D, E, F
A, B, C

G/SG/N/7/MYS/1 G/SG/N/11/MYS/1
-5ASTM
A299/A299M

One Grade only

Standard specification for pressure

plates, carbon steel, manganese-silicon

ASTM
A302/A302M

A, B, C, D

Standard specification for pressure vessel

plates, alloy steel, manganese-molybdenum
and manganese-molybdenum-nickel

ASTM
A387/A387M

2, 12, 11, 22, 22L,

21, 21L, 5, 9, 91,
911

Standard specification for pressure vessel

plates, alloy steel, chromium-molybdenum

ASTM
A515/A515M

60, 65, 70

Standard specification for pressure vessel

plates, carbon steel, for intermediate and
higher temperature service

ASTM
A516/A516M

60, 65, 70

ASTM
A533/A533M

Type A, B, C, D Class
1, 2, 3

ASTM
A537/A537M

Class 1, 2, 3

ASTM
A542/A542M

Type A, B, C, D, E
Class 1, 2, 3, 4 and
4a

Standard specification for pressure vessel

plates, carbon steel, for moderate and lower
temperature service
Standard specification for pressure vessel
plates, alloy steel, quenched and tempered,
manganese-molybdenum
and
manganesemolybdenum-nickel
Standard specification for pressure vessel
plates, heat treated, carbon-manganese-silicon
steel
Standard specification for pressure vessel
plates, alloy steel, quenched and tempered
chromium-molybdenum

ASTM
A553/A553M

Type I, II

ASTM
A738/A738M

A, B, C

ASTM
A841/A841M

A, B, C

BS EN
10028-2

P235GH
P265GH
P295GH
P355GH
P275 NH
P275 NL1
P275 NL2
P355 NH
P355 NL1
P355 NL2
P460 NH
P460 NL1
P460 NL2
SB 450M
SB 480M
SPV450
SPV 490
SGV 450
SGV 480
SBV 1A
SBV 1B
SBV 2
SBV 3
SQV 1A
SQV 1B
SQV 2A
SQV 2B
SQV 3A
SQV 3B
SLA 235A
SLA 235B
SLA 325A

BS EN
10028-3

JIS
G3103 (SB)
JIS
JIS G3115 (SPV)
JIS
JIS G3118 (SGV)
JIS
G3119 (SBV)

JIS
G3120 (SQV)

JIS
G 3126 (SLA)

vessel

Standard specification for pressure vessel

plates, alloy steel, quenched and tempered 8
and 9 percent nickel
Standard specification for pressure vessel
plates, heat treated, carbon-manganese-silicon
steel for moderate and lower temperature
service
Standard specification for steel plates for
pressure vessel, produced by the ThermoMechanical Control Process (TMCP)
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

G/SG/N/7/MYS/1 G/SG/N/11/MYS/1
-6-

JIS
G4109 (SCMV)

3.

For offshore and

structural use (oil
and gas)

EN10025-3

EN10025-4

EN10025-5

SLA 325B
SLA 360
SLA 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
grain structural steels

roller

weldable

fine

Thermo mechanically rolled weldable fine grain

structural steels

Structural steels with improved atmospheric

corrosion resistance- weathering steel

EN10025-6

S460Q
S460QL
S460QL1
S500Q
S500QL
S500QL1
S550Q
S550QL
S550MQL1
S620Q
S620QL
S620QL1
S690Q
S690QL
S690QL1
S890Q
S890QL
S890QL1
S960Q
S960QL

Flat products of high yield strength structural

steels in the quenched and tempered condition

ASTM A514/A514M

Grade
Grade
Grade
Grade
Grade
Grade
Grade
Grade

A
B
E
F
H
P
Q
S

Standard specification for high yield strength,

quenched and tempered alloy steel plate
suitable for welding

ASME
SA633/SA633M

Grade
Grade
Grade
Grade

A
C
D
E

Standard specification for normalized

strength low alloy structural steel plates

ASME
SA514/SA514M

Grade
Grade
Grade
Grade
Grade
Grade
Grade
Grade

A
B
E
F
H
P
Q
S

Standard specification for high yield strength,

quenched and tempered alloy steel plate
suitable for welding

high

G/SG/N/7/MYS/1 G/SG/N/11/MYS/1
-7EN10225

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

A
L245/B
L290/X42
L320/X46
L360/X52
L390/X56
L415/X60
L450/X65
L485/X70
L555/X80
L625/X90
L690/X100
L830/X120
GR.50

Specification for line pipe

4.

For line pipe for oil

and gas

API 5L

5.

For
offshore
structural use (oil
and gas)

API 2H
API 2W

GR.60
GR.50T
GR.60

For ship building

industry

ABS

A
B
D
E
AH32
AH36
AH40
DH32
DH36
DH40
EH32
EH36
EH40
DQ51
DQ70
EQ43
EQ51
EQ56
EQ63
EQ70
AQ51~FQ70

6.

Specification for carbon manganese steel plate

for offshore platform tubular joints
Specification for steel plates for offshore
structures produced by Thermo-Mechanical
Control Processing (TMCP)
American Bureau of Shipping

G/SG/N/7/MYS/1 G/SG/N/11/MYS/1
-8BV

LR

DNV

GL

A
B
D
E
AH32
AH36
AH40
DH32
DH36
DH40
EH32
EH36
EH40
A
B
D
E
AH32
AH36
AH40
DH32
DH36
DH40
EH32
EH36
EH40
A
B
D
E
AH40
DH40
EH40
A32
A36
A500
A550
A620
D32
D36
E32
E36
E420
E500
E550
E620
E690
A500~FQ70
A
B
D
E
AH36
AH40
DH36
DH40
EH36
EH40

Bureau Veritas

Lloyd's Register

Det Novske Veritas

German Lloyd's Register of Shipping

G/SG/N/7/MYS/1 G/SG/N/11/MYS/1
-9NK

7.

For
corrosion
resistance plate

JIS G3114(SMA)

JIS G3125 (SPA)

ASTM A242/A242M
ASTM A588/A588M

8.
9.

10.

Machine structural
use
Engineering
application
(dump truck,
bucket, hopper,
Grizzly bar etc.)

JIS G4051

Lifting equipment
& automotive
(truck chassis,
cranes and
earthmoving
machines)

EN 100 25-6; S690

QL
EN 100 25-6; S890
QL

A
B
D
E
AH32
AH36
AH40
DH32
DH36
DH40
EH32
EH36
EH40
SMA400AW
SMA400BW
SMA400CW
SMA400AP
SMA400BP
SMA400CP
SMA490AW
SMA490BW
SMA490CW
SMA490AP
SMA490BP
SMA490CP
SMA570W SMA570P
SPA-H
SPA-C
One grade only

Nippon Kaiji Kyokai

Grade A
Grade B
Grade C
Grade K
S45C
S50C
Hardox 400

Standard specification for high yield strength

low alloy structural steel with 50Ksi (345Mpa)
minimum yield point to 4in. (100mm) thick

Hardox 450
Hardox 500
Weldox 700E
Weldox 900E
Weldox 1100E
EN 10149-2; S600
MC

Domex 600

EN 10149-2; S700
MC

Domex 700

__________

Hot rolled atmospheric corrosion resisting steels

for welded structures

Superior atmospheric corrosion resisting rolled

steel
Standard specification for high yield strength
low alloy structural steel

Carbon steel for machine structural use

Advanced high strength abrasion resistant steel
with a nominal hardness of 400 HBW
Advanced high strength abrasion resistant steel
with a nominal hardness of 450 HBW
Advanced high strength abrasion resistant steel
with a nominal hardness of 500 HBW
Advanced high strength structural steel with a
yield strength of 650 - 700 Mpa
Advanced high strength structural steel with a
minimum yield strength of up to 900 Mpa
Advanced high strength structural steel with a
minimum yield strength of 1100 Mpa
Advanced high strength hot rolled, extra high
strength, cold forming, with a minimum yield
strength of 600 Mpa
Advanced high strength hot rolled, extra high
strength, cold forming, with a minimum yield
strength of 700 Mpa