The Malaysian government recently announced a two-year "production capacity suspension order" aimed at solving the problem of steel oversupply and providing steel manufacturers with time to adjust their business.
The government will exempt steel manufacturing licenses that meet the decarbonization requirement, such as producing low-carbon steel products or carbon reduction technologies, with the aim of promoting the development of green steel technologies.
Although Malaysia has attracted a large amount of green steel investment, the problem of oversupply of steel still exists. The consumption of steel in Malaysia has been increasing year by year, but production capacity far exceeds demand, leading to intensified competition within the industry.
This policy has affected the expansion and manufacturing diversification plans of all steel mills. Some market participants said that Malaysia's steel industry needs more innovation and investment in oversupply issues to improve competitiveness and sustainable development capabilities.
Source: YIEH
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