CSC Steel sees firmer steel market in 2026, stays disciplined on costs


KUALA LUMPUR: CSC Steel Holdings Bhd will continue to adopt a disciplined approach in navigating the steel market in 2026, with a focus on cost efficiency, selective inventory management and operational excellence amid improving global demand conditions.

The group said for 2026, the global steel market is expected to benefit from demand conditions, supported by measures to foster greater market discipline, including China’s implementation of an export licensing system for selected products.

Together with stronger trade protection measures in key markets such as the United States, the European Union, Mexico and Canada, these developments are expected to ease regional supply imbalances and support a gradual recovery in international steel prices, despite persistent global overcapacity.

In the fourth quarter ended Dec 31, CSC’s net profit jumped 61.7% to RM18.3mil, or earnings per share of 4.97 sen, from RM11.3mil, or 3.07 sen, a year earlier, while revenue dipped marginally to RM330.4mil from RM345.02mil.

For the full financial year ended Dec 31, the group’s net profit more than doubled to RM69.4mil from RM34.16mil, although revenue fell 8.8% to RM1.38bil compared with RM1.51bil a year ago.

Domestically, CSC said the the steel industry is navigating a balanced environment characterised by emerging cost pressures and resilient demand drivers.

It noted that the financial impact arising from the implementation of carbon taxation and supply chain adjustments related to commercial vehicle regulations is expected to be partially offset by favourable currency movements, providing a strategic buffer for imported input costs.

“Concurrently, baseline steel demand remains anchored by consistent construction activity and the ongoing execution of major infrastructure and industrial projects.”

The group noted that legislative support continues to be a key catalyst following the enactment of the Countervailing and Anti-Dumping (Amendment) Act 2025, which strengthens enforcement and anti-circumvention measures.

However, competitive pressures remain elevated following the final determination of a 0% anti-dumping duty on certain galvanised steel coil imports from Vietnam, intensifying price competition from lower-cost imports.

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