작성일자: 2013.11.7

작성자: 쿠알라룸푸르 무역관 정윤서 (jys0916@kotra.or.kr)

 

 

1. Demand Trend

 

 ○ Overall, the demand for rubber conveyor belt is moderate in Malaysia as per our phone interview with industry players.

 

 ○ Red Energy Sdn Bhd Business Development Manager; Mr Alex Wong stated the demand for the conveyor belt is lower in Malaysia compared to other Asian countries as the market is quite small and not many cement plants in Malaysia. Conveyor belts are mainly use in quarries, batching, cement and power plants in Malaysia.

 

 ○ Red Energy (http://www.redenergy.com.my) is currently the distributor for Bridgestone’s conveyor belt in Malaysia. It is primarily involved in the trading and engineering services of various industrial products used in the cement industry, quarries, power plants and other related factories. The supply record of the company as follows;

  - No. 1 Longest conveyor belt in Malaysia for Petronas Penapisan Melaka (Spec: Pipe conveyor EP-1250, Length 4.95㎞, Width 1100㎜)

  - 2nd & 3rd Longest belt in Malaysia for Lekir Bulk Terminal, Manjung Power Plant (Spec: ST-1250, Length 4.5㎞, Width 1800㎜)

  - Longest steel cord belt in Cement Industry for Malayan Cement Industries (Lafarge) in Langkawi (Spec: ST-1000, Length 2.0㎞, Width 1200㎜)

 

 ○ Another supplier of rubber conveyor belt; Universal Open Supply Sdn Bhd (http://www.uos.com.my) Purchasing Manager; Mr Lee mentioned the demand for rubber conveyor belt is quite high especially from cement and mining industries in Malaysia as those industries use a lot of rubber conveyor belts.

 

 ○ While Star Belts Sdn Bhd (http://www.starbelts.com.my/) Business Development Manager; Mr Leow commented the company has joint venture with Hwa Seung Corporation (Korea) for about 10 years in manufacturing for conveyor belts. He could not disclose the demand and market size but stated the company is also actively looking for other conveyor belts to distribute with minimum purchase USD2 million per year. Pricing and quality are the main concern for the company.

 

 ○ According to Department of Statistics Malaysia, the growth in mining sector rebounded 4.1% in the second quarter of 2013 (Q1 2013: -1.9%).

 

Real Gross Domestic Product in Malaysia (including Mining)

Source: Department of Statistics Malaysia

 

 

2. Import tariff

 

 ○ According to the official statistics, the import amount increased 6.00% to USD56.05mil for HS Code 4010 Conveyor or transmission belts or belting of vulcanized rubber in 2012 compared to previous year.

 

 ○ China was the largest import source, followed by Japan and Thailand. These countries accounted for 56.84% of total imports.

 

2012 World Trade Atlas

Malaysia – Imports

HS Code 4010 (Conveyor or transmission belts or belting of vulcanized rubber)

                                                                        (Unit: Millions of US Dollar, %)

Rank	Country	Value			Change
		2010	2011	2012	12/11
-	World	43.89	52.87	56.05	6.00
1	China	6.89	9.67	12.37	27.97
2	Japan	5.79	6.05	10.38	71.56
3	Thailand	6.98	8.68	9.11	4.96
4	Singapore	9.33	8.02	7.98	-0.50
5	Germany	2.39	2.77	2.64	-4.70
6	United States	3.01	2.91	2.40	-17.54
7	Indonesia	1.23	1.92	2.22	15.63
8	Taiwan	1.95	2.11	1.60	-24.14
9	Vietnam	0.88	2.23	1.10	-50.82
10	Hong Kong	1.02	1.16	0.88	-24.20
12	Korea, South	0.85	2.11	0.68	-67.83

Source: Department of Statistics Malaysia

 

 ○ Malaysia’s import of HS Code 4010.11 Conveyor Belts or Belting Reinforced only with Metal from Japan increased tremendously from USD0.06mil to USD2.40mil in 2012. While the import from South Korea slipped by 56.81% to USD0.17 mil in 2012 or 1.2% share of total import.

 

2012 World Trade Atlas

Malaysia – Imports

HS Code 4010.11 (Conveyor Belts or Belting Reinforced only with Metal)

                                                                        (Unit: Millions of US Dollar, %)

Rank	Country	Value			Change
		2010	2011	2012	12/11
-	World	2.27	3.52	4.34	23.18
1	Japan	0.07	0.06	2.40	4197.39
2	Vietnam	0.00	1.74	0.67	-61.43
3	Singapore	0.08	0.43	0.30	-30.89
4	Indonesia	0.00	0.00	0.27	-
5	China	1.36	0.46	0.26	-42.38
6	Korea, South	0.21	0.39	0.17	-56.81
7	Germany	0.19	0.18	0.10	-44.71
8	France	0.00	0.06	0.05	-8.46
9	United States	0.05	0.08	0.04	-49.47
10	Thailand	0.00	0.05	0.04	-10.49

Source: Department of Statistics Malaysia

 

 ○ Malaysia’s import of HS Code 4010.12 Conveyor Belts or Belting Reinforced only with Textile Material was dominated by China and Japan while import from South Korea decreased by 86.47% from USD0.86 mil in 2011 to USD0.12 mil in 2012.

 

2012 World Trade Atlas

Malaysia – Imports

HS Code 4010.12 (Conveyor Belts or Belting Reinforced only with Textile Material)

                                                                        (Unit: Millions of US Dollar, %)

Rank	Country	Value			Change
		2010	2011	2012	12/11
-	World	5.52	9.09	7.53	-17.19
1	China	2.00	4.40	4.60	4.55
2	Japan	0.61	0.44	0.47	7.05
3	Thailand	0.76	0.70	0.46	-34.56
4	Vietnam	0.77	0.48	0.37	-23.59
5	Taiwan	0.18	0.51	0.34	-33.78
6	Germany	0.12	0.21	0.20	-4.62
7	Indonesia	0.26	0.30	0.18	-40.82
8	Netherlands	0.02	0.01	0.17	1440.51
9	Singapore	0.02	0.04	0.16	275.27
10	Korea, South	0.14	0.86	0.12	-86.47

Source: Department of Statistics Malaysia

 

 

3. Competition trend

 

 ○ According to industry players, the market for rubber conveyor belt is dominated by China and Japanese brands such as Bridgestone and Yokohama.

 

 ○ There are currently two manufacturers of conveyor belts in Malaysia which are Hwa Seung Corporation(Korea) under HSLS Rubber Industries Sdn. Bhd. and another Taiwanese manufacturer in Malaysia under First Belting Sdn. Bhd.

 

 ○ According to Red Energy Sdn Bhd, the market for conveyor belt is highly competitive as there are many players in the market such as Goodyear (most of the tyre manufacturers are producing conveyor belt too) and cheap products from China.

 

 ○ Star Belts Sdn. Bhd. and Universal Open Supply Sdn. Bhd. also commented the competition for conveyor belts is tough. Besides, the competition is stiff especially from China as no import duty for conveyor belt from China.