UOB KayHian Research: Demand for steel expected to remain soft

“Local steel bar prices improved marginally to RM2,195 per tonne as at July 12, compared to RM2,165 per tonne in June, largely due to a low base effect during the Ramadhan and Hari Raya season - compounded by muted construction activities. “We are forecasting steel ASPs of RM2,400 and RM2,500 for RM2,200 and RM2,300 for 2019 and 2020, respectively,” said UOBKayHian.

PETALING JAYA: Earnings of local steel players are expected to remain lacklustre, as the weak demand environment continues to persist.

UOB KayHian Research said it expects demand for steel to remain soft for now, with the possibility of gradual recovery at the end of the year.