Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
Since steel price is increasing, the group might reverse impairment previously done. The reversal is huge if based on calculations n auditor agreed. Previously. They already reversed 10m. Iron ore drop but steel price increase definitely will increase profits margin. For July to September must b superb good to be announced during Nov.
Iron ore prices dropping will drag steel products like rebar, steel sheet price down … Still think the steel manufacturers need volume ( not steel product price level ) to push up their quarterly profit…
If last time u are right, but now china strategy had changed the world. The steel price even higher because of china curb production lead iron ore prices drop. Meanwhile push infra n economy internal recovery lead steel price can maintain or higher. No such thing like iron ore drop then steel price drop already. Pray for China continue curb production n flight with Australia. Then steel industry will continue make big profit.
Local economy recovery still weak. Luckily international prices is good and export to china and SEA. If next year local economy recover then wil b double effects. Profit even higher. Also essb also upgrading their facilities and profit margins will b improved.
If U talking about economy of China , the property developers being restricted in their borrowings will mean less houses n residential units being built n the demand of steel products will drop , that mean steel products price will go down as the iron ore prices in world market … The drop of iron ore prices just back to normal n more healthy for world economy … Local recovery is weak then a bit strange that U so positive about next 2-3 quarters profits of steel manufacturers (it depends more on volume than steel products prices at Malaysia )… Most steel manufacturers in the country exporting limited steel products to ASEAN countries, should be …
The world steel price influenced by China as China supply more than half to the world especially to SEA. China Internal demand strong hence gov withraw rebate for steel export but imposed tax for export. Previously China export but now china import the steel. In mid n long term is good for all steel manufacturers.
I known China had changed policy n has reduced her export of steel products in last few months … none of the ASEAN countries produce enough steels to export steel products back to China , maybe the Alliance steel ( one of the largest steel manufacturers in Malaysia) main market is ASEAN market n can export some products back to China …
