Malaysian steelmakers are optimistic about the government’s industry roadmap, seeing it as a potential remedy for escalating challenges such as plant closures, overcapacity, and unfair trade practices that have strained the sector, market participants told Platts, part of S&P Global Commodity Insights.

Lion Industries Corp. is hoping that Malaysia’s Steel Industry Roadmap 2035 would provide support for struggling steelmakers.

The company’s Amsteel Mills subsidiary shut its Banting plant in Selangor state due to high electricity costs, although the company previously said it was exploring options to restart operations.

Overcapacity and intense competition from cheap imports are also hurting Malaysian steel producers, Lion Industries said.

“The local steel industry is hopeful that the Steel Industry Roadmap 2035 will address and resolve all these issues, and will provide the support for the industry deemed a strategic industry in the country’s industrialization program to achieve stable and sustainable growth,” Quah Le Ching, Lion Industries’ general manager for corporate communications, told Platts Oct. 21.

Lion Industries produces steel bars and wire rods for the construction, fabrication and manufacturing industries.

Mycron Steel Bhd. is also “positive” with the roadmap, CFO Choo Kah Yean told Platts Oct. 22.

Mycron subsidiary Mycron Steel CRC Sdn. Bhd. has an installed capacity of 260,000 mt/year of cold-rolled coils, while Melewar Steel Tube Sdn. Bhd. unit has an installed capacity of 148,800 mt/year of steel pipes, according to the company’s website.

The Malaysian Iron and Steel Industry Federation, an industry group, previously said in a statement that it would “contribute constructive feedback to support its effective implementation.”