Malaysia-based steel producer Malaysia Steel Works (KL) Bhd (Masteel) has announced its financial results for the third quarter of the current year, posting a net profit of RM 38.67 million ($9.42 million), compared to a net profit of RM 1.24 million in the corresponding quarter of 2016.
Malaysia Steel Work’s revenues amounted to RM 401.44 million ($97.88 million) in the third quarter of the current year, up 46 percent year on year. The increase in revenue and profit in the given quarter were mainly attributed to higher selling prices and higher volumes due to the strengthening of local steel prices and stronger domestic demand.
According to the company’s statement, seasonal weather phenomenon and year-end holidays are normally expected to have a dampening effect on demand for and prices of steel bars. However, the subsequent rebound of demand could be stronger in the ensuing months as the roll-out of major public infrastructure projects is expected to intensify. As such, prices are expected to recover in line with demand.