Rise in steel prices set to continue


Moving forward, chairman Tan Sri Mohd Desa Pachi said LSH will continue to focus its strategies and priorities on further strengthening its position via diversification away from the construction industry.

KUALA LUMPUR: Leader Steel Holdings Bhd (LSH) believes that the international uptrend in steel prices may be sustained right into the third quarter of 2021 (Q321).

In its Annual Report 2020, it said the trending steel prices are due to several factors, namely, extended lead times due to logistics disruptions and capacity resumptions, historically low inventories and higher demand from automobile markets in the United States and Europe.

It noted that Malaysia faces a steel supply shortage due to a lag in price and construction activities.

LSH said currently, local downstream players are exhibiting cautious purchasing behaviour due to the current international high price and uncertainties in the supply and economic recovery.

“We are monitoring macro factors that may affect the steel price in the financial year 2021 (FY21), particularly the Chinese steel policies and post-pandemic economic stimulus plans, both global and local, ” it said.

Moving forward, chairman Tan Sri Mohd Desa Pachi said LSH will continue to focus its strategies and priorities on further strengthening its position via diversification away from the construction industry.

“LSH is optimistic and will continue to exercise caution for any changes or development in both the domestic and international steel markets so as to achieve promising performance for FY21, ” he said. — Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

CPO futures forecast to trade with downside bias next week
Proposed telco merger outside MyCC's purview, CEO says
Portugal's EDP betting on floating solar farms in Southeast Asia
Oil price rises more than 2% as supply outages outweigh recession fears
Wall St Week Ahead-Investors brace for pivotal July after dismal first half
Thai Airways aims for 2024 completion of restructuring
Labour issues dominate businesses
Education needs to be realigned to meet industry demand
Short Position - Who will helm MPOA next?, Shorter is not better, Large-scale solar mess
GST net collection may not be as high as thought

Others Also Read