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Malaysia Steel Industry Report - H2, 2013

November 2013 | 33 pages | ID: M1810D9993DEN
Emerging Markets Direct

US$ 475.00

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This report profiles Malaysia’s steel industry, discussing market trends through the second half of 2013 and the outlook for 2014. The report also profiles leading players in the industry Lion Corporation, Ann Joo Resources, CSC Steel Holdings, Southern Steel, and Kinsteel.

Malaysia’s apparent steel consumption rose by 8.3% from 8.24mn tons in 2011 to 8.92mn tons in 2012, mainly due to mega infrastructure projects under the government’s Economic Transformation Programme (ETP). However, domestic output declined by 3.1% to 4.95mn tons. Imports of steel products surged significantly by 15.6% to 5.42mn tons while exports declined by 7% to 1.45mn tons in 2012.

The local steel industry was severely affected by the influx of cheap imported steel products, which tend to reduce market prices. This was further compounded by the uncertainties in the economic recovery of the U.S. and Europe as well as the slowdown in the economic growth in China, the world’s largest steel producer; which led to the softening of international steel prices and volatile raw material prices. Under these tough market conditions, performances of steel companies generally declined. Most companies saw reduced sales volume and earning margins.

According to the Malaysian Iron and Steel Industry Federation (MISIF), the domestic steel industry, in consumption terms, is expected to grow at an annual rate of 4% until 2020. More demand for domestic steel products is expected with the stepping-up of the implementation of various mega-projects under the ETP. With the pickup in demand growth momentum, coupled with expected lower raw material costs, steel companies should see better earnings next year.

Key points:
  • This report includes financial information and a comparative matrix for the leading players in Malaysia’s steel sector, among them Lion Industries Corporation Berhad, Ann Joo Resources Berhad, CSC Steel Holdings Berhad, Southern Steel Berhad (SSTEEL), and Kinsteel Berhad.
  • In line with the rollout of the government’s mega infrastructure projects, Malaysia’s total steel demand was 8.9mn tons in 2012. Meanwhile, crude steel output fell 5.5% to 5.6mn tons.
  • The performance of the local steel industry in 2013–14 will depend mainly on the rate of construction projects implemented under the government’s ETP. The MISIF expects domestic steel demand to grow at an annual average rate of 4%.
  • Due to the scale of China’s production and Malaysia’s progressive liberalization policy, local steel players fear that an influx of imported steel products into Malaysia would continue to exert pressure on prices and margins.
1. INDUSTRY PROFILE

1.1 Global overview
1.2 ASEAN overview
1.3 Country overview
1.4 Industry performance
  1.4.1 Production
  1.4.2 Consumption
  1.4.3 Employment and labour cost
  1.4.4 Productivity
1.5 Government policy

2. MARKET TRENDS AND OUTLOOK

2.1 Steel industry trends
2.2 Imports and exports
2.3 Impact of government initiatives
  2.3.1 3rd Industrial Master Plan
  2.3.2 10th Malaysia Plan
2.4 Impact of China
2.5 Investment
2.6 Prices
2.7 Market outlook

3. LEADING PLAYERS AND COMPARATIVE MATRIX

3.1 Leading players
  3.1.1 Lion Industries Corporation Berhad
  3.1.2 Ann Joo Resources Berhad
  3.1.3 CSC Steel Holdings Berhad
  3.1.4 Southern Steel Berhad
  3.1.5 Kinsteel Berhad
3.2 Comparative matrix
3.3 SWOT analysis

4. TABLES & CHARTS

Table 1: Global apparent steel use (ASU) for finished steel products (2012–2014)
Table 2: Global crude steel production (mn tonnes) (2010–9M2013)
Table 3: Top 10 steel producing countries (mn tonnes) (9M2013)
Table 4: ASEAN apparent steel consumption (metric tonnes) (2012 vs. 2011)
Table 5: Malaysia steel production statistics (metric tonnes) (2008–2012)
Table 6: Malaysia production of finished steel products (metric tonnes) (2008–2012)
Table 7: Malaysia apparent steel consumption of total steel products (metric tonnes) (2008–2012)
Table 8: Malaysia apparent steel consumption by finished steel products (metric tonnes) (2008–2012)
Table 9: Total employment and labour cost of the iron and steel industry (2008–2013)
Table 10: Malaysia imports of iron and steel products (metric tonnes) (2008–2012)
Table 11: Malaysia exports of iron and steel products (metric tonnes) (2008–2012)
Table 12: LIONIND steel division performance (FYE2013)
Table 13: LIONIND annual steel production capacity
Table 14: LIONIND five-year financial highlights
Table 15: ANNJOO five-year financial highlights
Table 16: CSCSTEL five-year financial highlights
Table 17: SSTEEL five-year financial highlights
Table 18: KINSTEL five-year financial highlights
Table 19: Key financial ratios comparison of the leading players
Chart 1: Top 10 steel producing companies in 2012 (mn tonnes)
Chart 2: ASEAN production, import, export and consumption (mn tonnes) (2006-2012)
Chart 3: Malaysia's total steel production and consumption (mn tonnes) (2003-2012)
Chart 4: Malaysia vs. world apparent steel use per capita (kg) (2003-2012)
Chart 5: Industrial Production Index: basic iron & steel (2005=100) (Sep 2011-Sep 2013)
Chart 6: Malaysia import and export of iron & steel products (mn tonnes) (2003-2012)
Chart 7: China crude steel capacity vs. supply vs. demand (mn tonnes) (2008–2013)
Chart 8: Approved investments in Malaysia's basic metal products industry (MYR mn) (2012-2013)
Chart 9: Iron ore price trend (USD per tonne) (Mar 2010–Sep 2013)
Chart 10: ANNJOO segmental revenue in 2012


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