Malaysia-based steel producer Malaysia Steel Works (KL) Bhd has announced its financial results for the third quarter of the current year, posting a net loss of RM 24.13 million ($5.71 million), compared to a net loss of RM 6.09 million in the corresponding period of 2014. The increase in loss before tax is mainly due to lower margins and unrealized foreign exchange losses in the third quarter this year.
Malaysia Steel Work’s revenues amounted to RM 301.44 million ($71.33 million) in the third quarter of the current year, down 16.75 percent year on year. The decrease in revenue in the given quarter was mainly attributed to lower selling prices and sales volumes as a result of the importation of low-priced Chinese-made steel bars.
Malaysia Steel Works stated that, with the commencement of commissioning of its new high capacity steel bar rolling mill in mid-October, the company has the capacity to progressively convert most of its upstream billet output to steel bars which command a price premium over other steel products such as wire rods and hot rolled coils. These higher-priced products are expected to contribute positively towards the bottom line of the company in the ensuing months. The company anticipates it will steadily overcome the effects from the severe downturn of global steel prices in the future.