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Malaysia Steel Assn lobbies to triple scrap export tax

November 03, 2010 - 01:57 GMT Location: Petaling Jaya

KEYWORDS: Malaysia , steel , Malaysia Steel Assn

The Malaysia Steel Assn (MSA) has called for the government to triple export taxes on ferrous scrap to 30% or an additional 350 ringgit ($113) per tonne, whichever is higher.

If passed, the high tax would be as good as an outright ban. "There is no reason for the government to allow export for materials that have shortage in local market," said MSA honorary secretary Henry Pheng Chin Guan, also ceo of Perwaja at the MSA launch on Tuesday night. "Why should local materials be exported and local players have to pay higher for imports and freight charges?" Malaysia, whose mills exclusively use ferrous scrap as feed, currently, imports 3 million tpy of ferrous scrap, about 60% of its needs. The government should discourage scrap exports to give mills "a level playing field", said MSA, noting that other countries have banned scrap exports to ensure sufficient supply for their own mills. To completely protect the raw material interests of local mills, MSA is also urging...

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