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http://www.thestar.com.my/business/business-news/2015/02/21/steel-mill-boon-for-masteel/
Saturday, 21 February 2015
Steel mill boon for Masteel
Future income expected from rail operations, property development and infrastructure construction.
MALAYSIA Steel Works (KL) Bhd (Masteel) expects an additional RM400mil in sales per annum from its new rolling mill plant, which is built next to its meltshop in Klang, Selangor.
The expansion represents a 300,000-tonne increase in its downstream segment, which provides better margins for the company.
Currently, its downstream segment is served by its rolling mill plant in Petaling Jaya, which has a capacity of 450,000 tonnes.
By increasing its downstream production, Masteel’s profit margin is expected to improve. Prior to the expansion, all the company’s downstream production was handled by its plant in Petaling Jaya.
It was able to produce about 700,000 tonnes upstream, but if its downstream segment was to add value, then Masteel will see not only margin enhancement but also economies of scale.
“Previously, half of the steel billets we produced were sent to the Petaling Jaya rolling mill for enhancement, but once the expansion is completed, we will be able to reap better synergies between upstream and downstream production,” managing director Datuk Seri Tai Hean Leng tells StarBizWeek.
The expansion of the downstream segment was planned about two years ago.
The company has allocated RM100mil for the growth in its downstream activities, which will see its steel bar production increase by 67% to 750,000 tonnes.
“The expansion is to serve the demand. We realise that our supply is below demand and it will also provide economies of scale once the plant expansion is completed,” Tai says.
The downstream production is able to provide substantially better margins compared with the upstream segment.
An analyst who tracks the company estimates that the downstream segment is able to provide margins that could double those of the upstream.
However, the industry faces the biggest challenge from dumping activities by China companies.
Without an efficient policy, steel players will suffer even though there is a quality disparity.
The analyst says steel prices will continue to impact steel players in the country.
In regards to that, Tai says, “We are confident the Government will decide on the appropriate policies to help our industry.”
He adds that its products have a differentiation in terms of quality.
Masteel’s products go through stringent processes so that they meet the construction industry’s requirements, while it also has an advantage due to the strategic location of its Petaling Jaya plant.
“It is all about the utilisation rate of plants, proximity to the market and the technology employed. Through 40 years of honing our skills, we have become highly specialised in the manufacturing of high tensile steel bars,” Tai says.
PublicInvest Research analyst Chong Hoe Leong says the company’s earnings surprise may come from lower power rates, going forward.
The Government has announced a reduction in the electricity tariff rate for residential usage, but there was no mention of the industrial rates. Any downward revision will augur well for Masteel, which incurs 15% of its cost from energy.
Scrap steel accounts for some 70% of total costs.
“Masteel has seen steady income because about 33% of its steel sales is for the development of the mass rapid transit (MRT) project.”
Chong notes that Masteel’s plant in Petaling Jaya gives it a cost advantage for the MRT works that are carried out within the area.
He estimates that Masteel’s rolling mill expansion will contribute a 10% to 15% growth to its bottomline in 2015 and 2016.
For its first nine months ended Sept 30, 2014, revenue registered RM1.06bil while profit came in at RM11.28mil.
Its bottomline for the period was partly dragged down by a one-off deferred tax adjustment of RM9mil in its third quarter, as well as the electricity tariff hike last June.
Analysts forecast its revenue for the financial year ended Dec 31, 2014 to range from RM1.4bil to RM1.47bil, while full-year profit is estimated at between RM19.7mil and RM21.2mil.
Masteel has been actively pursuing its proposed RM1.23bil intercity rail transit system in Iskandar Malaysia, Johor, and is waiting for the final nod from the Government before proceeding.
In fact, the company has not slowed down in its pursuit of the project and has even identified the train to be used for the rail project.
“Once the economic council approves the project, we are well on our way to roll it out,” Tai enthuses.
According to him, the company and its partner, KUB Malaysia Bhd, are discussing a 37-year concession from the Government.
The project will be taken under a 60:40 partnership known as Metropolitan Commuter Network Sdn Bhd (MCN) between Masteel and KUB.
The business model will be sound with the income streaming in from three areas: rail passengers from the train operation, prop

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http://www.chinatimes.com/newspapers/20160712000124-260203
中國大陸鋼鐵第一大省河北省將組織開展化解過剩產能集中行動。華爾街見聞引述外媒報導，唐山市將於今（12）日起開始執行多項鋼鐵嚴格限產措施。
知情人士稱，唐山市政府昨（11）日下發文件，要求從今日至7月31日期間，該市使用煤氣發生爐的軋鋼、鍛造等企業，全部對加熱爐實施停產治理，以改善環境空氣品質。這也是唐山繼上月頒布史上最嚴鋼鐵限產政策後，再度展開大規模減產。
據悉，河北省是大陸最大的鋼鐵產區，唐山更是重中之重，鋼鐵產量占大陸總產量的1成。唐山1年的鋼鐵製造量與全球第4大鋼鐵生產國的美國相當。
根據唐山最新的鋼鐵限產政策，到月底之前，不僅該市鋼鐵企業燒結機停止生產；全市露天礦山一律停產治理；全市各類建築工地一律停工整治等。在實施上述措施的同時，7月25日至7月31日，該市所有焦化企業停止裝煤、出焦。
河北政府網稱，早在7月9日，河北省就展開化解過剩產能集中行動。當時共拆除高爐6座、煉鐵產能312萬噸；拆除轉爐8座、煉鋼產能486萬噸；退出煤礦10處、產能301萬噸；拆除水泥磨機5台（套）、產能95萬噸；拆除平板玻璃生產線3座、產能282萬重量箱；拆除焦爐21座、產能590萬噸。
報導稱，河北省大力出清過剩產能的行動，也是大陸中央致力開展1998年以來力度最大去產能的一部分，也是今年推進供給側結構性改革的重要任務。
大陸國務院今年2月公布鋼鐵行業化解過剩產能意見，要求在5年內完成壓縮1至1.5億噸過剩鋼鐵產能的目標，並將確定的目標任務分發到各地和央企。不過，該目標之前計畫為3年。
今年大陸粗鋼的壓減產能目標為4,500萬噸左右。其中，河北省計畫今年壓減1,726萬噸煉鐵、1,422萬噸煉鋼產能。河北首批1,077萬噸煉鐵、820萬噸煉鋼產能壓減任務已經下達，要在11月底前完成，年底前完成第2批壓減任務，目標十分艱鉅。
大陸國家發改委主任徐紹史在上周曾經表示，各省區市務必要在7月15日前，將化解過剩產能任務目標責任全部分發到市縣和企業。要在7月底前，全部編制完成每個退出產能項目以及其任務的具體時間進度表。
(工商時報)

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http://cn.wsj.com/gb/20160713/fin094600.asp
中国钢铁价格上涨带动铁矿石价格升至10周高位
铁矿石价格位于5月初以来的最高水平，因随着中国钢铁价格的走高，交易员押注短期内铁矿石需求强劲。
钢铁指数(The Steel Index)的数据显示，周二中国进口铁矿石售价大约每吨58.80美元，较前日上涨6.1%，较年初水平上涨37%。
澳新银行(Australia and New Zealand Banking Group)分析师称，作为中国钢铁制造业中心，河北省唐山市发布的限产计划支撑钢铁价格走高，进而推动铁矿石价格飙升。在上海交易的螺纹钢期货较周初水平已经上涨超过7%。
澳新银行在一份每日报告中称，河北省即将进行的钢厂关停举措继续支撑这一市场，但中期内依然是一个风险因素，预计钢铁产出将下滑。
Marex Spectron分析师Hui Heng Tan说，钢铁价格上涨会改善钢厂的盈利状况，他看好短期的铁矿石需求前景。
Rhiannon Hoyle

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http://www.chinatimes.com/newspapers/20160713000115-260203
中國最大鋼城河北省唐山市昨（12）日起到月底前實施最嚴格的去產能措施，受此激勵，昨日市場上黑色系大宗商品集體暴漲，焦炭、鐵礦砂、動力煤、棉花、玻璃等盤中漲停。
截止昨日下午收盤，焦炭、鐵礦砂、玻璃漲停，螺紋鋼漲5.62％、焦煤漲5.61％、動力煤漲4.92％、熱軋板卷漲4.61％、棉花漲4.52％、瀝青漲4.12％。
為了保障本月底的唐山大地震40週年紀念活動期間的空氣品質，唐山推出大規模鋼鐵限產政策，到月底之前，不僅該市鋼鐵企業燒結機停止生產；全市露天礦山一律停產治理；全市各類建築工地一律停工整治等。
在實施上述措施的同時，7月25日至7月31日，該市所有焦化企業停止裝煤、出焦。
此外，距離9月在杭州舉辦的G20峰會不到兩個月，長三角地區的大氣汙染防治也已經提上議事日程。上海市要求8月24日至9月6日，全市石化、鋼鐵和水泥等255家生產企業限產，山東省濟南、青島等9市也列入限產範圍。
鋼鐵庫存方面，全中國線材、螺紋鋼、熱軋板卷、冷軋板卷、中厚板5大品種，綜合庫存總量為874.05萬噸，已經較上個月減少14.1萬噸，降幅為1.59％；而全中國的鋼材市場庫存連續第7周下降，較去年同期下降32.07％。
利多消息不斷傳出，大大激勵黑色系大宗商品上揚，不過也有市場人士認為，由於現在是需求淡季，不同於3月有春季需求和房地產需求等，本次上漲是否能夠持續，仍有待觀察。
(工商時報)

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