Izz88,Masteel annual production have increase to 1Million Mt starting early this year, 650K Mt is last year statistic already.

Southern Pricing : (Morning) Maintain
Y16-32=Rm2400
Y10,12,Y40 &R10 =RM2550
R6,8,12,16,20&25=Rm2600 (No Stock)

Amsteel Pricing : (Morning) Up RM30/Mt
Y16-32=Rm2400
Y10,12,Y40 &R10 =RM2550
R6,8,12,16,20&25=Rm2600

Southern Pricing : (Morning) Maintain
Y16-32=Rm2400
Y10,12,Y40 &R10 =RM2550
R6,8,12,16,20&25=Rm2600 (No Stock)

Amsteel Pricing : (Morning) Up RM30/Mt
Y16-32=Rm2400
Y10,12,Y40 &R10 =RM2550
R6,8,12,16,20&25=Rm2600

Patient is the keywords for certain gains.

Bro Ming, Quantity will decide pricing for Stockist ,Distributor, Traders & Hardware and payment terms will be preferential for millers who have cash.

Hi 55555,
My opinion is as followed:

1) SS is high on LB due to Southern Hot Roll Coiled provision(144Mil) that will be lifted soon, finance cost high but restructuring already on going to fine tune cost. Some of the details I cannot say too much as its too sensitive.

2)AJ Blast furnace(iron ore) is ok, therefore no worry as I just been there last month to verify, AJ still can produce as it have EAF(Electric Arc Furnace) base on scrap.

3) Amsteel is the highest for production volume capacity but due to restraint on the financial its only producing 60% of its cap. Yes Parkson performance will affect Lion Industries EPS. Southern will grab the business of course as it have excess cash and capacity.

4) SSteel & Annjoo is based in Prai next to Penang 1st Bridge with own private jetty. At the moment SSteel cost to transport is Rm42/Mt and it consist 2% of cost of production therefore is negligible during price uptrend but it will be burden during price downtrend.

5) I have 50 lots of Southern & 10 lots of AnnJoo not much at the moments but still buying when there is a clearance sales by some short term investors. Recently my Boss followed my advice and bought large qty of SSteel that he have earn a substantial amount of profit if he sells now, TP is rm2.50.

To be in fact I am no sifu, just someone who enter the stock exchange 2 years ago but not active due to hectic work in Southern & Hong Leong.

Hope this will clear your mind then.
Best regards,
Edward

Bro KLCI King , You are right Shanghai Price Index is the benchmark for rebar price movement in overall.

BRo KLCI King, RMB4098 is based on Shanghai Price Index whereas the Southern Region like Guangzhou & Guangxi is RMB4500/Mt(where Country Garden , RnF and Tian Li Property Development is based)

Broheaven123, when is the 2nd Qtr & 3Qtr report coming out?

Yes Leo, u r right therefore EAF is an option to them at the moment as Iron Ore price have surge quite significantly recentlyand the coking coal price is maintain.
Still largely depends on the iron ore & coking coal supply is adequate or not as AJ is largely depends on RIO Tinto & China for both materials.
If the price surge more than 3 % AJ will opt for EAF which is much more cheaper to operate during night time.

Bro Dragon88, sorry to say that, at the moment situation from domestically and foreign there will be a shortages of rebar in the market as oversea pricing is much attractive than the locals.
For eg today Msia rebar is RM2400 for big rebar size but in Vietnam & SEA is around RM2650 already where Chines price is already RM2800/Mt.
Until today we are still the cheapest rebar in the world, therefore steel miller foresee more viable to export than sell domestically with better margin and profits.
Where demand is greater than supply, price will definitely increase as there is already enquiry from China counterpart to export back to them

Bro investorem ,price for raw material is on the surge therefore need to built up scrap material also, AJ have hybrid system therefore they will evaluate which one is have better efficiency cost for production(either iron ore or scrap base)
Buying aggressively means they have forecasted this 3 months will be shortages, better buy now than later as the moment they are so cash rich can afford to stock up for better pricing.

Bro Leo, ur scrap trader have no stock to sell anymore as most of them already sapu by the millers directly.

Bro Stock Kingdom, AJ & SS sapu local scrap as the impurities is high therefore price lower. Masteel is force to buy scrap from oversea(which is higher cost and quality) and local scrap have to fight with Amsteel to leverage the cost of production.
Masteel used to buy a lot of pig iron from AJ at the low price but now things have changed that AJ can recycle to used back this pig iron to replace the scrap.

Bro Ananas, u r welcome.

AnnJoo & Southern already start buying scrap at 1100/mt since last week from oversea, which Masteel started buying at 1250/mt on premium grade.
Why I know? because my company have estimated 1000Mt of offcut that is less than 200mm that all of them offer to buy as this is considered pure scrap as there is no impurities like other scrap suppliers.

Bro Leo, u are most welcome. 为人之道，以礼待人；以谦卑为和才能勿施于人。

Southern Pricing : (Morning) Up RM10/Mt
Y16-32=Rm2400
Y10,12,Y40 &R10 =RM2550
R6,8,12,16,20&25=Rm2600 (No Stock)

Amsteel Pricing : (Morning) Maintain
Y16-32=Rm2370
Y10,12,Y40 &R10 =RM2520
R6,8,12,16,20&25=Rm2570

Southern Pricing : (Morning) Up RM10/Mt
Y16-32=Rm2400
Y10,12,Y40 &R10 =RM2550
R6,8,12,16,20&25=Rm2600 (No Stock)

Amsteel Pricing : (Morning) Maintain
Y16-32=Rm2370
Y10,12,Y40 &R10 =RM2520
R6,8,12,16,20&25=Rm2570

Bro Money Sifu, u r most welcome; there is a saying in Chinese proverb 和气生财（with harmony makes more wealth) therefore no need to be disturb by malicious remarks as gaining knowledge from each other and making money at the same time is a wonderful things to do.
To be in fact my knowledge is restricted to steel making and machinery only therefore I can only predict some trends analysis for my boss for his review and figure out what the is the future of each steel mills prospect.
Leo in fact is more knowledgeable than me in term of other field as he does more research analysis on different industry.

China steel price expected to be stabilize but due to new restriction order will increase the expectation of uptrend again.

Dear All, Good Morning

Bro TY Liew U r most welcome, we should group together to fends off rumour mongers and concentrate on making benefits for all new learner in the stock market.

Bro TY Liew: Pls review this and you will understand even though the news is 2 weeks old;

KUALA LUMPUR: Maybank Investment Bank Research expects Ann Joo Resources to report better earnings in the second half of 2017 after a weaker second quarter due to seasonally softer demand and higher raw material inventory costs.

It said on Wednesday the better financial performance in H2 would hinge on the recovery in sales volume and average selling prices (ASPs) recover as construction activities pick up pace again.

“We maintain our earnings forecasts which have already imputed for the weaker 2Q17. Maintain Buy and target price of RM3.75, based on unchanged 10 times 2017 price-to-earnings ratio (PER) (mean) on 30% diluted EPS. Ann Joo is a key beneficiary of the construction upcycle in Malaysia,” it said.

To recap, Maybank Research expects Ann Joo to report substantially weaker net profit for 2Q17 (1Q17: PAT RM74mil) given the:
(i) softer industry’s demand for building materials as construction activity slowed during the Hari Raya fasting month and festive season;
(ii) lower industry’s ASPs with billets and bars ASPs down 8% on-quarter in 2Q17; and (iii) higher raw material inventory costs, which were procured in 1Q17, used in 2Q17 production.
“Based on our channel checks, steel bar ASP has risen rapidly to RM2,200 a tonne currently (+14% in a month) as construction activities gained traction and demand for long steel products improved.

“We also note that the local bar ASP is still at a 12% discount to that of China (June 2017: 18%) and hence, with the better demand ahead, we think the ASP gap may close,” it said.

Maybank Research pointed out Malaysia’s ASPs used to be at a premium to that of China but has gone below that of China since March 2017.

“We maintain our earnings forecasts which have factored in our expectation of a weaker 2Q17 and better earnings in 2H17.

“We see stronger demand for building materials in 2H17-2018, underpinned by mega infrastructure projects (KVMRT 2, SUKE, KVLRT 3 and ECRL).

“We project Ann Joo to chart a record high net profit in FY17 (+26% on-year) but earnings growth to be tepid in FY18 (+2%) due to its capacity constraint (plant utilisation: 85-90%),” it said.

Read more at http://www.thestar.com.my/business/business-news/2017/07/26/maybank-research-sees-better-earnings-for-ann-joo-in-h2/#QRxAEWcA8sFIEUkh.99

Dear All Bros, thanks for trusting us, Leo & I are ex Steel Millers Management staff, therefore we know them inside out and we are reflecting what we knows about this Steel Industries.
We are no sifu but in fact we are more in the industry itself, Leo have much exposure In Msia when I am more prompt to China Steel Market as even my existing company is one of the biggest trader for raw and semi steel products and 90% of customer base is from China Construction firm.

Hi Pirates : Simple explaination and you will understand, if do all sizes, plant need to make adjustment on the Rolling mill, this will incur higher downtime that will decrease production volume but if you do only certain sizes the efficiency will increase by 25%.
Those size R6,8,12,16,20& 25 will greatly decrease volume and efficiency of the Steel Plant at least by 30% therefore you should know why there is a reluctant for Steel Mill to produce this certain sizes.

Southern Pricing : (Morning) Up RM20/Mt
Y16-32=Rm2370
Y10,12,Y40 &R10 =RM2520
R6,8,12,16,20&25=Rm2590 (No Stock)

Amsteel Pricing : (Morning) Revised UpRm30/Mt
Y16-32=Rm2370
Y10,12,Y40 &R10 =RM2520
R6,8,12,16,20&25=Rm2570

Due to shortage Amsteel revised pricing to be par with AnnJoo & Masteel and based on allocation

Southern Pricing : (Morning) Up RM20/Mt
Y16-32=Rm2370
Y10,12,Y40 &R10 =RM2520
R6,8,12,16,20&25=Rm2590 (No Stock)

Amsteel Pricing : (Morning) Revised UpRm30/Mt
Y16-32=Rm2370
Y10,12,Y40 &R10 =RM2520
R6,8,12,16,20&25=Rm2570

Due to shortage Amsteel revised pricing to be par with AnnJoo & Masteel and based on allocation

Southern Pricing : (Morning) Up RM20/Mt
Y16-32=Rm2390
Y10,12,Y40 &R10 =RM2540
R6,8,12,16,20&25=Rm2590 (No Stock)

Amsteel Pricing : (Morning) Maintain
Y16-32=Rm2340
Y10,12,Y40 &R10 =RM2490
R6,8,12,16,20&25=Rm2540

Look at the price and you will understand why are investing for future not instant.

11/08/2017 10:21

Southern Pricing : (Morning) Up RM20/Mt
Y16-32=Rm2390
Y10,12,Y40 &R10 =RM2540
R6,8,12,16,20&25=Rm2590 (No Stock)

Amsteel Pricing : (Morning) Maintain
Y16-32=Rm2340
Y10,12,Y40 &R10 =RM2490
R6,8,12,16,20&25=Rm2540

Look at the price and you will understand why are investing for future not instant.

只要手的云开见明月，真金不怕红如火，耐心地等吧‘哥们

Bro Chean Yeh, I got the price from all steel millers everyday.

只要手的云开见明月，真金不怕红如火，耐心地等吧‘哥们

Bro Warn3r, u are most welcome

Bro Zexon, due to productivity therefore unable to cater this size but still need to let customer know market pricing but no stock on hand.

Southern Pricing : (Afternoon) Maintain
Y16-32=Rm2370
Y10,12,Y40 &R10 =RM2520
R6,8,12,16,20&25=Rm2570 (No Stock)

Amsteel Pricing : (Morning) Maintain
Y16-32=Rm2340
Y10,12,Y40 &R10 =RM2490
R6,8,12,16,20&25=Rm2540

Southern Pricing : (Afternoon) Maintain
Y16-32=Rm2370
Y10,12,Y40 &R10 =RM2520
R6,8,12,16,20&25=Rm2570 (No Stock)

Amsteel Pricing : (Morning) Maintain
Y16-32=Rm2340
Y10,12,Y40 &R10 =RM2490
R6,8,12,16,20&25=Rm2540

Bro Warn3r, its ok I will keep sharing like what I used to do.

Congrats to Everyone who invested

Congrats to Everyone who invested

Bro Warn3r, those from retirement starting to sell, funders starts to buy lol

Sorry Southern just re-quote pricing

Southern Pricing : (Afternoon) Up RM20/Mt
Y16-32=Rm2370
Y10,12,Y40 &R10 =RM2520
R6,8,12,16,20&25=Rm2570 (No Stock)

Amsteel Pricing : (Morning) Maintain
Y16-32=Rm2340
Y10,12,Y40 &R10 =RM2490
R6,8,12,16,20&25=Rm2540

Sorry Southern just re-quote pricing

Southern Pricing : (Afternoon) Up RM20/Mt
Y16-32=Rm2370
Y10,12,Y40 &R10 =RM2520
R6,8,12,16,20&25=Rm2570 (No Stock)

Amsteel Pricing : (Morning) Maintain
Y16-32=Rm2340
Y10,12,Y40 &R10 =RM2490
R6,8,12,16,20&25=Rm2540

Southern Pricing : (Afternoon) Maintain
Y16-32=Rm2350
Y10,12,Y40 &R10 =RM2500
R6,8,12,16,20&25=Rm2550 (No Stock)

Amsteel Pricing : (Morning) Maintain
Y16-32=Rm2340
Y10,12,Y40 &R10 =RM2490
R6,8,12,16,20&25=Rm2540

Southern Pricing : (Afternoon) Maintain
Y16-32=Rm2350
Y10,12,Y40 &R10 =RM2500
R6,8,12,16,20&25=Rm2550 (No Stock)

Amsteel Pricing : (Morning) Maintain
Y16-32=Rm2340
Y10,12,Y40 &R10 =RM2490
R6,8,12,16,20&25=Rm2540

Bro Sorimachi, ASP is up so is import scrap cost will up infinitely(AJ case) but local scrap also not enough to sustain to produce billets therefore import will be imminent and cost will go up and so will be ASP within this year.

Bro Soonadol, we do import billets as local scrap is not enough, therefore indirectly will increase cost of production.

Bro TY Liew, Nope as now back in Msia already.

Bro OOMMGG, ur sharing is impeccable but this will happened only after November during winter period which is considered low season period in China. From the looks of it Scenario 2 will be likely to happen in the North East & North West of China which consist 40% of raw mineral extraction.
情景二（中限产）：产量4%受限，螺纹价格涨至4500元/吨（较当前价格上涨15%）
中度限产或致螺纹涨价15%左右，可能致使下半年PPI超出当前预期0.6个百分点。

Bro, this will create uptrend for the steel millers therefore the slogan now is gradually sales technic(慢慢卖）until it is par with China pricing.
China is in critical point, once hit the benchmark point it will shoot up to RM3000/mt within Sept.

08/08/2017 15:23