1) Eastern steel produces billet for a long product(they also sell it to other steel rolling company). There is info that they currently setting up rolling plant

2) Masteel competitive edge is not valid(if this is true, why they still in loss for the last 2 quarters), the reason they use 100% scrap because of they only have EAF, but so does lionind and southern steel.

3) Annjoo, eastern and alliance have blast furnace does not mean they don't buy steel scrap. Nowadays they will mix between scrap and hot molten iron(go google about eaf hybrid process) to get better result in term raw material price, reduce melting time process and power consumption.

4) Location? , well so does lionind, they also have plant at klang

5) 100% pure long steel player is a disadvantage, other steel players also can produce same product at the higher capacity if they want.

Let tell you something

For 2019 until today steel price especially long product is not looking good due to high supply.

The first half of 2018 still looking supported with anti dumping tariff.

But, Second half price slump badly due to new steel producer start commissioning their new plant then start selling to the market.

Let me introduce you: ALLIANCE STEEL at MCKIP

Their new plant with 3.0++million annual tonnage(right now they are the biggest blast furnace steel operator at this country taking over annjoo) is the real threat.

(Yeah, some said it mainly for export but they also sell to the domestic market, at one time as low as rm19xx++).

Also to make thing worst, hiap teck eastern steel also resume operation.

After GE14, even with a resume of some mega project, the price still too soft,

Property market also got too many overhangs product, the developer not too eager to lunch any new mega township or development at the moment

That's the reason for the feb & may earning, all major player (annjoo,ssteel,lionind,masteel) reporting a significant loss