Malaysia-based CSC Steel Holding has announced its financial results for the first half of the current year, posting a net profit of MYR 17.21 million ($4.1 million), down 18 percent, while its revenues decreased by 2.2 percent to MYR 674.94 million ($160.6 million), both year on year. The company said that the decrease in revenue was mainly due to the decline in export sales for galvanized products, although the sales volume for other steel products had increased. According to CSC Steel, the challenges of high raw material costs and the influx of cheap imports are still the main factors affecting the business performance.
“Although the elevated iron ore prices are not expected to persist next year, market speculation would still be the main factor for iron ore to remain at high levels in the second half of this year,” the company statement said.
Going forward, apart from the rise in iron ore prices, there are various potential influencing factors that may affect the Malaysian steel industry such as Malaysia’s new steel policy and the government’s revival of some mega infrastructure projects, CSC Steel indicated. However, the prospects for the construction sector in the second half year of 2019 are expected to remain sluggish as certain construction contracts will only be released in early 2020. The company said that it is cautiously optimistic that it will achieve positive results for the full year of 2019.