Steel Sector_Muted Impact From New Steel Measures_20081117 OSK[1]

See important disclosures at the end of this report PP10551/10/2009(022563) November 17, 2008 1 OSK Research MALAYSIA EQUITY Investment Research Daily News Sector Update Private Circulation Only OVERWEIGHT Ng Sem Guan +60 (3) 9207 7678 [email protected] STEEL Law Mei Chi +60 (3) 9207 7621 [email protected] Muted Impact from New Steel Measures The government is lifting the export ban on scrap iron effective a week from now. International Trade and Industry Minister Tan Sri Muhyiddin Yassin said this followed a request by industry players who had stocks of scrap iron piled up over the last few months due to the plunge in global prices. The move will ease steel players’ cash flow problem, which will help the industry move forward, he said. (starBiz) Separately, Steel Business Briefing learns from an industry insider close to the China Iron & Steel Association (CISA) that export duties on many steel products will be removed as announced by China’s policy makers middle of last week. These include hot-rolled coil, HR sheets, plates, most heavy sections (including H-beams, I-beams and angles), welded pipes, most wire products and most alloy steel. But the export taxes for rebar, wire rod, bar and light sections will remain unchanged (refer to Figure 1). Also, a proposal for increasing steel export tax rebates like those still enjoyed on OCTG and most cold-rolled and coated coil and sheets was not on the agenda of the executive meeting on Nov 12, ’08. A rise in the rebates had been rumoured for some time. (Steel Business Briefing) Figure 1: China New Export Tax From Dec 1, ‘08 Source: Steel Business Briefing

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Steel Sector_Muted Impact From New Steel Measures_20081117 OSK[1]