KUALA LUMPUR, March 10 (Bernama) -- Bursa Malaysia rebounded to end higher today with the benchmark FBM KLCI reclaiming the 1,700 psychological level, supported by improved global sentiment after US President Donald Trump signalled a potential de-escalation of the Iran conflict, alongside Malaysia’s stronger Industrial Production Index (IPI) data. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 27.51 points, or 1.64 per cent, to 1,701.68 from yesterday’s close of 1,674.17. The benchmark index opened 10.68 points higher at 1,684.85, its lowest point today, and hit a high of 1,703.61 in the late afternoon session. Market breadth was positive, with gainers thumping losers 929 to 382. A total of 361 counters were unchanged, 982 untraded and 19 suspended. Turnover declined to 3.60 billion units worth RM3.75 billion from yesterday’s 5.52 billion units worth RM5.87 billion.
India is preparing to impose a temporary tax of up to 25% on steel imports to counter cheap Chinese steel flooding the market, according to government and industry sources.
Key Developments:
Safeguard Duty Proposal
- A 25% safeguard duty is under consideration to protect domestic steelmakers.
- An investigation led by the Directorate General of Trade Remedies is expected to conclude within a month, paving the way for the tax implementation.
Support for MSMEs
- Small manufacturers (MSMEs) initially opposed the proposal but dropped their objections after receiving assurances of discounted steel prices.
- MSMEs registered with the government will receive steel at FOB (free on board) export prices, about 20% lower than market rates.
Industry Concerns
- Major Indian steel producers such as JSW Steel, Tata Steel, and ArcelorMittal Nippon Steel India have raised concerns about unfair competition from low-priced Chinese imports.
India’s Steel Imports
- Despite being the world's second-largest crude steel producer, India has become a net importer of steel.
- Imports surged to a record high in the first seven months of the current financial year, posing a challenge to domestic producers.
Government’s Stance
The steel ministry has recommended a 25% safeguard duty on flat-steel products for two years. The commerce ministry is expected to take a final decision soon, with broad consensus emerging after addressing MSME concerns.
Impact
- Positive:
- Protects domestic steel producers from cheap imports.
- Ensures affordable raw materials for MSMEs.
- Potential Risk:
- Could strain trade relations with China.
- May marginally increase costs for large-scale steel consumers.
India's decisive move underscores its efforts to balance domestic industry protection with the needs of small manufacturers, as it works to curb the growing reliance on cheap Chinese steel.
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