heaven123, do u see the some funds company is trying very hard to push down the price.....Just keep this counter until year end and u see the wonders

Ming, ur question is answer as above mentioned, inventory there is but pricing is the key factor

Southern Pricing : (Morning) Up RM20/MT
Y16-32=Rm2280
Y10,12,Y40 &R10 =RM2450
R68,12,16,20&25=Rm2480

This show that market is shortage of rebar that steel mill is in fully control of the pricing for the next 2 and 1/2 years

Leo, AJ also have stock but they started up as hardware, to stockist then steel millers. Therefore stockist mentality is still there , waiting for the right price to sell as when market is completely exhausted then only strikes. This happened last year September to December when market is completely exhausted then all hell break loose on this early January 2017......

Southern Pricing : (Morning) Up RM20/MT
Y16-32=Rm2280
Y10,12,Y40 &R10 =RM2450
R68,12,16,20&25=Rm2480

This show that market is shortage of rebar that steel mill is in fully control of the pricing for the next 2 and 1/2 years

There is a market shortage of rebar from now onwards, therefore ASP will shoot up to all time high where profit margin will increase sharply for the next 2 months as Masteel, Amsteel & Annjoo have restricted volume for traders to buy certain amount of tonnage.

There is a market shortage of rebar from now onwards, therefore ASP will shoot up to all time high where profit margin will increase sharply for the next 2 months as Masteel, Amsteel & Annjoo have restricted volume for traders to buy certain amount of tonnage.

WeiChyi, assume AJ this year 2017FY is PBT280Million, what is ur response? PAT is 210Million then wat is ur expectation then? Still lament about 2nd Qtr? Focus on long term not short term

Sorimachi, SSteel have reached their PBT early this year, therefore it wont be far away from the Target as its the same thing happened to AJ, high inventories ,high production cost and long holidays in June will affect overall performances.
This 2nd Half you will be shock by their profitability's and performance, then the price of the shares already sky rocketing

Jay C, AJ also have spill over sales from March 2017 to April & May , therefore the effect is minimal and addition to this, AJ start to export during this period of time by maintaining reasonable margins on profit. PBT estimated at 40-50Million (PAT 30-37Million).

Southern Pricing : (Afternoon) Up RM20/MT
Y16-32=Rm2260
Y10,12,Y40 &R10 =RM2430
R68,12,16,20&25=Rm2460

Southern Pricing : (Afternoon) Up RM20/MT
Y16-32=Rm2260
Y10,12,Y40 &R10 =RM2430
R68,12,16,20&25=Rm2460

Leo, U R Right on the scraps and the margin for SSteel

CanCan168, to be in fact can keep both company shares

Ann Joo have advantage over SSteel but overall the situation is the same for both plant.

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.

To recap, Maybank Research expects Ann Joo to report substantially weaker net profit for 2Q17 (1Q17: 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 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.

Pricing up due to shortage of rebar and higher inventory cost up due to spill over from last quarter

Southern Pricing : (Afternoon) Up RM20/MT
Y16-32=Rm2240
Y10,12,Y40 &R10 =RM2410
R68,12,16,20&25=Rm2440

Southern Pricing : (Afternoon) Up RM20/MT
Y16-32=Rm2240
Y10,12,Y40 &R10 =RM2410
R68,12,16,20&25=Rm2440

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.

To recap, Maybank Research expects Ann Joo to report substantially weaker net profit for 2Q17 (1Q17: 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 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/#sebK9kehjrWdCLoU.99

Hi Holding King, sorry this is live announcement given by Steel Mill sales personnel therefore there is no link on this....

Tatyang U r welcome...

Southern Pricing : (Afternoon)
Y16-32=Rm2220
Y10,12,Y40 &R10 =RM2390
R68,12,16,20&25=Rm2420

Leo, Wire rod today pricing is already Rm2260/mt

Amsteel Pricing : (Morning)
Y16-32=Rm2220
Y10,12,Y40 &R10 =RM2390
R6,8,12,16,20&25=Rm2420

Amsteel Pricing : (Morning)
Y16-32=Rm2220
Y10,12,Y40 &R10 =RM2390
R6,8,12,16,20&25=Rm2420

During June is RM1920-1950/MT , During the first week of July stable at RM1980/MT, 7th July increase to RM2000/Mt, 10th increase to Rm2050, 14th increase to RM2080, 17th increase to RM2100 ,20th RM2120/MT ,21st Rm2180 and today 24th is RM2200.

Southern Pricing : (Afternoon)
Y16-32=Rm2200
Y10,12,Y40 &R10 =RM2370
R6,8,12,16,20&25=Rm2400

Southern Pricing : (Afternoon)
Y16-32=Rm2200
Y10,12,Y40 &R10 =RM2370
R68,12,16,20&25=Rm2400

This will be a good 1st Qtr SSteel fo FY2018

Southern Pricing : (Afternoon)
Y16-32=Rm2200
Y10,12,Y40 &R10 =RM2370
R68,12,16,20&25=Rm2400

Thank You Bro Warn3r

Mr.Pauper, this ESO is only given to senior mgmt. who is retiring soon" Golden Handshakes" or ex gratia define by other terms

MR CHOW CHONG LONG (a company director) was dealing with company shares on 14-Jul-2017.

This Mr.Chow is Group MD of SSteel Berhad, there will be good dividend/profit coming out for the FY2017 as he choose this period of time exercising his right for Executive Scheme Option.

17/07/2017 08:23


This is classified information, not for me to divulge but u can see my msg above; then u can understand my message.

Today Southern Pricing: (Morning)
Y16-32=Rm2140
Y10,12,Y40 &R10 =RM2290
R68,12,16,20&25=Rm2340

Southern Pricing : (Afternoon)
Y16-32=Rm2180
Y10,12,Y40 &R10 =RM2350
R68,12,16,20&25=Rm2380

Just Up Rm60/Mt

Martin99, Sorry that this is deem classified information and different plant have different modus operandi, but u can look on my previous reply as above mentioned on the rough estimation.

Ananas, SSteel sells at market price, buying raw at future price(commodity) but mostly depend of based on market sentiments. There is gambling elements on this whether u win or lose largely on years of experiences and business acumen towards this field........

More is coming from all steel mills
Today Southern Pricing:
Y16-32=Rm2120
Y10,12,Y40 &R10 =RM2270
R68,12,16,20&25=Rm2320

YKW95, During June is RM1920-1950/MT , During the first week of July stable at RM1980/MT, 7th July increase to RM2000/Mt, 10th increase to Rm2050, 14th increase to RM2080, 17th increase to RM2100 and today RM2120/MT

Southern Steel increase rebar another Rm20/MT (ieRM2120) effective by today.

Bro U are most welcome, Sharing is Caring

Leo, Keep it UP and relax when making money......

Alex; Keep for 2 years then dispose and RUN as we don't know what will happened 2 years later......HAHAHAHA

Leo, anyway I can contact you offline? Especially when I m in KL area.....for outstation purpose

Leo . OIC bus still really appreciate on your writing on this industry as this broaden my horizon on stocks also.

Btw I was informed also by Amsteel, Masteel & AnnJoo that the based price for rebar is RM2100/mt therefore the whole market is in shortage of rebar and scrap and this will effect until end of the years.

Hi YKW95, I was informed by SSteel sales on the pricing as they are my ex colleague also.

Chinese Steel Mill is making ard RMB1000/mt, therefore the cost is RMB2600/mt(ie Rm1680/mt) which Msia steel mill u need to add on RM200/mt due to inefficiency of process and volume. So by end of the year local steel mill will make Rm400-600/mt which largely depends the efficiency on cost control etc.

Kevin008, Yes China Rebar is ard RM2200/mt at the moment but u need to include Safeguard Duty 13.42%+5% Import Duty and freight charges for coming to Msia is estimated Rm2600/mt , therefore the price of rebar in Msia can be around Rm2300/mt by end of the year. So wat do u think the profit of the steel mill will be like?

Leo, u have stop writing blogs recently, may I know the reasons?