The Steel

Advocate

ISSUE 1 • 2022
malaysiasteelinstitute.com

Slower Pace with

Various Uncertainty

Content
02

CEO Foreward04

US - China Trade Tension-BIDEN ERA (3)

10
13
15

What are 3rd Gen
AHSS?
Alliance Steel Strengthens
Presence with Rm5bil
Investment for Factory
Expansion
MSI Flood Relief
Programme 2022

24
28
31
32

16

Metal Scraps (Steel)
Importation

19

An Overview of
Mycron Steel Berhad

35

21

The Importance ofData for Business38

Training for Malaysian
Iron and Steel Industry
Designing Future
Autonomous Vehicles
for Use in a ‘Mobility As
A Service’ Model
Tackling the Challengeof Decarbonizing
Steelmaking
Steel Industry
Emissions to Decline
30% by 2050
Steel in Buildings andInfrastructure
Net-zero steel in building
and construction: The
way forward

43

MSI with You

46

MSI Bridging Gaps

49

MSI TrU

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The Steel Advocate ISSUE 1 • 2022

CEO Forward
The local iron and steel industry continues to make every effort in exporting construction related
products despite the various challenges faced. As for the missing link in the local flat products value
chain, the HRC production, it is likely we may need to wait for another 6-12 months before local
production of HRC comes on-board. The market sentiment of the iron & steel industry, with thedeclaration on 1 April 2022 by the Government of Malaysia’s transition to endemic phase of Covid-19
that provided positive impetus, improved to further drive demand leading the growth prospects.
This was despite hike in raw material prices, particularly scrap, iron ore and coking coal that can be
partly attributed to supply tightness and global supply chain disruptions caused by Russian-Ukraine
War and the weakening Ringgit.
On the global front, the World Steel Association forecast that world steel demand will grow by 0.4% in
2022 to reach 1,840 million tonnes (Mt), after increasing by 2.7% in 2021. Recovery from the pandemic
shock turned out to be stronger than expected in many regions thus far, despite continuing supply
chain issues and COVID-19 waves. However, a sharper than anticipated economic deceleration in
China led to lower global steel demand growth in 2021. For 2022 and 2023, the outlook still remains
highly uncertain. The expectation for a stable recovery will also largely depend on the war in Ukraine
and rising inflation, where it is predicted that the US will go into recession next year based on a pollby the Financial Times.
With all these uncertainties in the backdrop, the Ministry of International Trade and Industry (MITI),
to provide some guidance for the industry for the mid to long term, took a proactive step, appointing
Malaysia Industry-Government Group for High Technology (MIGHT) to conduct a Foresight Study
to develop mid to long-term measures for the industry towards 2030. MSI together with industry
associations have been fully engaged with MIGHT in providing inputs and suggestions throughvarious meetings and in a series of workshops organised by MIGHT involving relevant ministries,
agencies, associations and manufacturers.
All these planning and strategies for the industry will need to be supported by a well-educated/talent workforce. With regards to this, talent management becomes an important aspect thatneeds to carried out in parallel to ensure that the right people with the right skills/capabilities arealso developed for the successful implementation of these plans. To this end, MSI is doing its partby conducting “The Iron and Steel Industry Training Programme under the Twelfth Malaysia Plan
(RMK-12) for 2022”. Under this programme, MSI has developed two (2) modules, based on industry
needs namely, “Extensive Training” and “Upskilling of Specific Technical Knowledge Training”.
Additionally, MSI also provides customised training programmes for individual companies based on
their needs. MSI aims and hopes with these talent management efforts,
the steel industry will be supported by highly skilled workforce thatwill enhance performance, productivity, reduce employee turnoverand contribute to a stable workforce which in turn help build acompetitive iron & steel industry.
P.P. Steel Sdn Bhd and Syarikat Logam Unitrade Sdn Bhd are thelatest to join the MSI family. MSI welcomes the new members. We
look towards more companies joining MSI.
As we go into the 2nd half of 2022, we will continue to face challenges
and headwinds, we need to stay focussed and be fully aware of thechanges that are taking place both at domestic and global
levels to keep our heads above water. I wish all of the iron& steel players to be resilient during this trying times.
Final word, we hope you’ll enjoy our new look Newsletter.
Stay safe and be well always.

Lim Keng Yow

Chief Executive Officer
Malaysia Steel Institute4

The Steel Advocate ISSUE 1 • 2022

US - China
Trade Tension-BIDEN ERA (3)[Note: The views expressed are that of
the writer, based on reports from various
sources and not the view of MSI/MITI]BACKGROUND

New less virulent variants of Covid-19, betterat evading immunity from vaccines andantibody treatments, are continuing its
presence and creating some trade disruptions.
Other new unexpected developments havefurther exacerbated global trade disruptions– the Russia-Ukraine war and the most recent
challenge - inflation. The US-China trade tension
nevertheless keeps popping up in the media toshow that the trade tension between these twocountries has not died down and that this isgoing to be present for a long while.

UPDATE ON DEVELOPMENTS
US 232 Trade action on Steel and Aluminium

The US continued with the selective bilateraldeals (easing of tariffs to quotas):• Japan (31 March 2022): Only for steel, 1.25
million MT under Tariff Rate Quota (TRQ) withadditional requirement to fulfil to qualify for
the TRQ i.e. Requirement of process “melted
and poured”; 10% tariff remains for Aluminium;and• UK (22 March 2022 – announced): For steel,
0.5 million MT can be imported under TRQ
with condition of ‘melted and poured’; andfor aluminium TRQ of 11,400MT semi-finishedwrought; 9,333 MT foil with both requiringsubmission of Certificate of Analysis.

Section 301 Tariff on Chinese Imports – update
US Court of International Trade (CIT)[https://www.cmtradelaw.com/2022/04/u-s-court-of-international-trade-rulesustr-violated-apa-when-imposing-section-301-list-3-and-list-4a-tariffs-onchinese-goods/]

On 1 April 2022, CIT found USTR’s impositionof Section 301 List 3 and List 4A tariffs (eachcovering $200 billion and $300 billion worth ofgoods, respectively) on Chinese products failed

to comply with the Administrative Procedures
Act (APA). However, the CIT did not decide tovacate (remove) Section 301 List 3 and List 4A –implying the implementation however is still inplace despite the CIT decision.
Four-year review of Section 301 tariffs on China[https: //www.lexology.com/librar y/detail. aspx ?g=375169f4 -75a6 - 4bd6 97f8-8d3f81bf 194b&utm_source=Lexology+Daily+Newsfeed&utm_
medium=HTML+email+-+Body+-+General+section&utm_
campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsf
eed+2022-05-05&utm_term=]

On 5 May 2022 the USTR published the initiationof the four-year statutory review requirementof Section 301 tariffs action on China. Underthe review, the USTR will look into the need forthe continuation of the action. The USTR also
invited comments from domestic industries for
submission between 7 May – 5 July 2022 for List
3 and between 24 June – 22 August 2022 for List
4A. A decision is expected to be made based on
the comments from the industries to decide
whether to continue or terminate the US Section
301 tariffs on China. At the time of writing, theinvestigation is still ongoing.
STEEL TARIFFS – VIEWS- IMPACT[https://ajot.com/news/airbus-wins-37-billion-china-jet-deals-in-blow-to-boeing;https://ajot.com/news/boeing-rues-us-china-trade-war-as-airbus-wins-37-billiondeal]

Airbus vs Boeing Sales• Boeing Co. loses out to Airbus SE: Airbus soldalmost 300 airliners worth more than $37
billion to four Chinese airlines. This is in partdue to Boeing’s inability to deliver, including
the grounding of 737 Max jets; as well as dueto the US-China Tariff tension. The following
orders secured by Airbus speak volumes:
 China Eastern Airlines Corp.: 100 A320neo
narrow-body jets;
 Air China Ltd.: 64 jets from 2023 - 2027;
 Shenzhen Airlines (subsidiary of Air China): 32

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ISSUE 1 • 2022 The Steel Advocate

jets from 2024 - 2026;
and ChinaSouthern
Airlines
Co.:
96
A320neos from 2024
- 2027, as well as
leasing additional
19 A320neos planes.
•
Views on Airbus
winning the orders: Bloomberg Intelligence analysis:“…underscores the ongoing trade rift with
the US and the travails for the 737 Max, whichstill isn’t flying in the Asian country. Boeing’sbuild rates will remain stunted without
China.”; and The Global Times: “It is natural for the US side
to feel sour after losing the competition to
Airbus.” Also: “Judging from the performanceof these two companies in the global market,
since 2019, Airbus has been way ahead ofBoeing in terms of competing for passenger
plane orders and market share.”Economic Impact[https://www.bloomberg.com/news/newsletters/2022-07-05/supply-chain-latestus-eyes-lower-china-tariffs-to-combat-inflation]• According to a group in Washington called
Americans for Free Trade, the US’s trade war
with China has cost Americans $129 billion in
the form of Section 301 tariffs paid between
mid-2018 and April 2022.
• About 55% of all Section 301 tariffs have been
paid under Trump, with the rest having been
paid under Biden. However, on per monthaverage basis, the US 301 tariffs paid under
Biden is at US$3.8 billion, which is 67% higher
than the average paid during Trump’s era.
WTO Dispute Settlement Body – US Section 232
Cases[https://www.wto.org/english/news_e/news22_e/dsb_30jun22_e.htm]• Under Trump, the US blocked appointments tofill vacancies on the Appellate Body rendering
the Dispute Settlement Body toothless. The US,
the only WTO member, continues to block theappointment of DSB Appellate Body members.
• As there is no Appellate Body to hear appeals,
this procedurally prevents the adoption or
modification of the decision taken at the lower
Panel level for a final decision.
• On 30 April 2020, a group of 47 WTO members
notified the organization of the creation of a
new Multi-Party Interim Appeal Arbitration
Arrangement (or MPIA). These members,
wanting to see progress to disputes, created
MPIA an ‘Alternate Appellate Body’ to finalise
dispute cases. Members using MPIA agreed to
be bound by its decisions.

• As expected, the United States will not join thismovement.
• Implication: The US exporters cannot get theirgovernment to complain in WTO regarding
disputes about WTO-inconsistent tradebarriers. More importantly, all cases by andagainst the US under the Section US232 cases
will have no final decision for implementation.
• Meanwhile, the US has made separate deals on
WTO dispute cases: US-EU: The US-EU bilaterally resolved WTO
disputes related to US Section 232 actions;and US-Mexico-Canada Agreement (USMCA):
Withdrawal of Mexican and Canadian
retaliatory tariffs (valued at US$1.4 billion on
US dairy products).
• On 30 June 2022 at the 12th WTO Ministerial
Conference met and decided “to engage
in discussions aimed at securing a fully
functioning dispute settlement system by2024”. The rest of the WTO members, with the
exception of the US, however wanted to see
an immediate solution, which the followingintervention best describes:• “Mexico, speaking on behalf of 123 members,
introduced for the 55th time the group’s
proposal to start the selection processes forfilling vacancies on the Appellate Body. The
extensive number of members submitting the
proposal reflects a common concern over thecurrent situation in the Appellate Body which
is seriously affecting the overall WTO disputesettlement system against the best interest ofmembers, Mexico said for the group”.
Further:“Mexico again came back to say the fact amember may have concerns about certain
aspects of the functioning of the Appellate
Body cannot serve as pretext to impair anddisrupt the work of the DSB and disputesettlement in general, and that there was nolegal justification for the current blocking of theselection processes, which is causing concretenullification and impairment of rights for manymembers”.
• For now, MPIA appears to be the only way
forward to tackle nullification and impairmentof rights of WTO members, with the exceptionof the US cases by and against the US.

US-China Phase One Deal Update• The following Box article provides the updateof the Phase One Deal:

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The Steel Advocate ISSUE 1 • 2022

BOX ARTICLE
PHASE ONE DEAL UPDATE[https://www.piie.com/research/piie-charts/us-china-trade-war-tariffsdate-chart?utm_source=update-newsletter&utm_medium=email&utm_
campaign=piie-insider&utm_term=2022-04-27][https: //www.piie.com/blogs/realtime-economic-issues-watch/chinabought-none-extra-200-billion-us-exports-trumps-trade]

To recall, the Phase One Deal required China topurchase an additional US$200 billion worth of
US exports before 31 December 2021. China
only bought 57% of this requirement - a level thatis even below the set pre-tension 2017 level – inother words China’s purchases did not meet withany of the additional US$200 billion commitments.
The Covid-19 pandemic and now the inflationarypressures are part reasons, but looking at the deal,
with the Chinese retaliatory tariffs still in place on
US exports into China, it will be impossible to meet
Phase One commitments.

A look at US-China tariff levels:
US-China Tariffs*Note: ROW – Rest of the World

Percentage of US-China Trade Subject
to Tariffs:

The following sums up the information fromthe two charts above:• Average US tariffs on Chinese exports
remain elevated at 19.3 percent.
• These tariffs are more than six times higher
than before the trade war began in 2018.
These tariffs cover 66.4 percent of US
imports from China, or roughly $335 billionof trade (measured in terms of 2017 importlevels).
• Average Chinese tariffs on US exports also
remain elevated at an average of 21.2%.
China’s retaliatory tariffs continue to cover
58.3% of imports from the United States orroughly $90 billion of trade (measured interms of 2017 import levels).
On 17 February 2020, the Chinese government
announced an exclusion process whereby
Chinese companies could apply for a
temporary exemption from the retaliatory
tariffs. However, this attempt at trying to meetthe Phase One Deal did not help as China
was not able to live up to the commitment ofpurchasing an additional $200 billion of US
goods and services over 2020 and 2021.

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ISSUE 1 • 2022 The Steel Advocate

Trade Data by Main Sectors: Period: Overall(2009 – 2021) and by Sector (2016 – 2021)

US-Chinese Tariffs on the Rest of the World• China: lowered the tariffs it applies onimports from the rest of the world. China’s
average tariffs have declined from 8.0
percent in early 2018 to 6.5 percent by early2022.
• US: increased its average tariffs on imports
from the rest of the world from 2.2 percent
to 3.0 percent over this same period.

Overall Trade Data Comparison Period
2009 - 2021:

Trade Data Comparison Period 1 January
2020 – 31 December 2020:

Trade
Targets(2020-2021)
andAchievements – negatively impacted
sectors

Automotive• Only achieved 39% (Tesla and BMW moved
production destined for China; Ford,
including Lincoln claimed Trump’s tariffs
raised costs by US$1billion).
Agriculture• Only achieved 83% (Supported by subsidies).

END OF BOX ARTICLE

8

Technology and IP Related[https: //www.lexology.com/librar y/detail.aspx?g=acb8e42a-e302-44338adb-0a4b5c82f 23e&utm_source=Lexology+Daily+Newsfeed&utm_
medium=HTML+email+-+Body+-+General+section&utm_
campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsf
eed+2022-05-30&utm_term=]• 27 April 2022
USTR released the 2022 Special 301 Reporton Intellectual Property Protection and
Enforcement. The report provides special focus
on the new Chinese IP laws – providing the
USTR views on the impact on rights holders
in China covering, trade secrets, trademarks,
counterfeiting, judicial reform, copyright law,patent law, cybersecurity laws and seed law.
• Impact of US restrictions on Chinese
technology
In the last one year, China is seeing more homegrown technology companies. Out of the 20
fastest growing chip industry firms worldwide,
China accounts for 19 according to Bloomberg.
Further, they are competitive enough to attracteven Apple to supply iPhone flash memory. It
appears that the strategy employed by the US
in its Trade War with China could backfire.
PRESIDENT BIDEN IN OFFICE – POLICY DIRECTION[https: //www.piie.com/commentary/speeches-papers/us-re-engagementf ramework-builds-out-china-realistic?utm_source=update-newsletter&utm_
medium=email&utm_campaign=piie-insider&utm_term=yyyy-mm-dd]• The Biden Administration followed Trumps
paths of interest – a mind-set of ‘US first’; shying
away from trade agreements; continuing toclose doors to China and persuading otherpartners to isolate China. However, in thisprocess, the US also saw itself being isolated
and having a reduced global influence.
• Realising that the economies in the IndoPacific Region had closer dealings and

The Steel Advocate ISSUE 1 • 2022

relationships and were directly and indirectly
getting to be more dependent of China; aswell as being cognisant of the impending US
elections for local, state and national levels(Presidential elections set in 2024) in November
2022, Biden’s Administration on 23 May 2022
in Tokyo, launched the Indo-Pacific Economic
Framework (IPEF). The Framework with verybroad goals recognizes the region’s security
and prosperity as vital to American security andprosperity.
• The strategy points to US-centric interests
seen as a “the building block for America’s‘friendshoring’, or the creation of supply chainsbased only in countries with whom the US has
a security alliance” – the obvious exclusion ofChina in the IPEF points to ‘building China’ outof regional economic and technology networks.
• We need to wait and see how this US-led
initiative pans out in the future.
FINAL THOUGHTS• It appears after four years, that the US led USChina trade tension is unclear about the pathahead and where it will lead to.
• It started with US Section 232 Steel andAluminium action to protect US steel/aluminium industry, then on to US Section 301
targeting China’s technology development.
However, the US appears to have lost focus andhave started many other initiatives seeminglywith only one thought in mind – how todecouple China from the rest of the world – isthis realistic?
[Note: Sources quoted and where “no copyright infringement is intended”]

10

The Steel Advocate ISSUE 1 • 2022

What are

3rd Gen AHSS?

https://ahssinsights.org/blog/what-are-3rd-gen-ahss/
One of the tasks we took great care in completing
during the update of the AHSS Application
Guidelines was to provide a definition for what
constitutes a third generation (3rd Gen) Advanced
High-Strength Steel. We had been asked thisquestion many times, and often in addressing thequestion among our technical editors, we would
get various responses. Consequently, we made ita part of a discussion with our AHSS Guidelines
Working Group, made up of steel subject matter
experts from around the world at our member
companies. The following article reflects theoutcome of that discussion and is the definition
adopted by WorldAutoSteel.
First Generation Advanced High-Strength
Steels (AHSS) are based on a ferrite matrix forbaseline ductility, with varying amounts of othermicrostructural components like martensite,
bainite, and retained austenite providing
strength and additional ductility. These grades
have enhanced global formability comparedwith conventional high strength steels at thesame strength level. However, local formability
challenges may arise in some applications
due to wide hardness differences between the
microstructural components.
The Second Generation AHSS grades haveessentially a fully austenitic microstructure andrely on a twinning deformation mechanism
for strength and ductility. Austenitic stainlesssteels have similar characteristics, so they aresometimes grouped in this category as well. 2nd
Gen AHSS grades are typically higher-cost grades
due to the complex mill processing to produce
them as well as being highly alloyed, the latter ofwhich leads to welding challenges.
Third Generation (or 3rd Gen) AHSS are multiphase steels engineered to develop enhanced
formability as measured in tensile, sheared edge,
and/or bending tests. Typically, these steels rely
on retained austenite in a bainite or martensite
matrix and potentially some amount of ferrite
and/or precipitates, all in specific proportions
and distributions, to develop these enhanced
properties.
Individual automakers may have proprietarydefinitions of 3rd Gen AHSS grades containing
minimum levels of strength and ductility, or
specific balances of microstructural components.
However, such globally accepted standards
do not exist. Prior to 2010, one steelmaker had
limited production runs of a product reaching
18% elongation at 1000 MPa tensile strength.

ISSUE 1 • 2022 The Steel Advocate

Starting around 2010, several international
consortia formed with the hopes of achieving
the next-level properties associated with 3rd
Gen steels in a production environment. One
effortU-11, S-95 targeted the development of
two products: a high strength grade having 25%
elongation and 1500 MPa tensile strength anda high ductility grade targeting 30% elongation
at 1200 MPa tensile strength. The “exceptionalstrength/high-ductility” steel achieved 1538 MPa
tensile strength and 19% elongation with a 3%
manganese steel processed with a QP cycle. The
1200 MPa target of the “exceptional-ductility/
high-strength” was met with a 10% Mn alloy, andexceeded the ductility target by achieving 37%
elongation. Another effort based in EuropeR-22
produced many alloys with the QP process,including one which reached 1943 MPa tensile
strength with 8% elongation. Higher ductility was
possible, at the expense of lower strength.
3rd Gen steels have improved ductility in cold
forming operations compared with other steels
at the same strength level. As such, they may offer
a cold forming alternative to press hardening
steels in some applications. Also, while 3rd Gen
steels are intended for cold forming, some areappropriate for the hot stamping process.
Like all steel products, 3rd Gen properties are afunction of the chemistry and mill processing
conditions. There is no one unique way to reachthe properties associated with 3rd Gen steels– steelmakers use their available production
equipment
withdifferent
characteristics,
constraints, and control capabilities. Even whenattempting to meet the same OEM specification,
steelmakers will take different routes to achieve
those requirements. This may lead to eachapproved supplier having properties whichfall into different portions of the allowable
range. Manufacturers should use caution whenswitching between suppliers, since dies andprocesses tuned for one set of properties may

11

not behave the same when switching to anotherset, even when both meet the OEM specification.
There are three general types of 3rd Gen steels
currently available or under evaluation. All rely on
the TRIP effect. Applying the QP process to theother grades below may create additional highperformance grades.
◆TRIP-Assisted Bainitic Ferrite (TBF) and CarbideFree Bainite (CFB)•TRIP-Assisted Bainitic Ferrite (TBF) andCarbide-Free Bainite (CFB) are descriptions ofessentially the same grade. Some organizationsgroup Dual Phase – High Ductility (DP-HD, orDH) in with these. Their production approachleads to an ultra-fine bainitic ferrite grain size,
resulting in higher strength. The austenite in
the microstructure allows for a transformationinduced plasticity effect leading to enhanced
ductility.
◆Quenched and Partitioned Grades, Q&P or
simply QP•Quenching and Partitioning (Q&P) describes
the processing route resulting in a structure
containing martensite as well as significant
amounts of retained austenite. The quenchingtemperature helps define the relative
percentages of martensite and austenite while
the partitioning temperature promotes anincreased percentage of austenite stabile room
temperature after cooling.
◆Medium Manganese Steels, Medium-Mn, orMed-Mn•Medium Manganese steels have a Mn content
of approximately 3% to 12%, along with silicon,
aluminum, and microalloying additions. This
alloying approach allows for austenite to bestable at room temperature, leading to the
TRIP Effect for enhanced ductility during
stamping. These grades are not yet widelycommercialized.

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The Steel Advocate ISSUE 1 • 2022

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ISSUE 1 • 2022 The Steel Advocate

Alliance Steel strengthens
presence with

RM5bil investment
for factory expansion
By T.N.Alagesh, NST, March 2022
KUANTAN: Alliance Steel (M)Sdn Bhd (ASSB), which is
the Malaysia-China Kuantan
Industrial
Park’s(MCKIP)
first investor, will expand its
manufacturing plant here withinvestments worth RM5 billion.
Menteri Besar Datuk Seri
Wan Rosdy Wan Ismail said
the second phase expansion
project covering an area of
101.2ha is the continuationof innovative exploration ofbilateral economic relations
between both China andMalaysia under the “Belt andRoad” initiative.
“It is widely recognised thatiron and steel products are oneof the main exports for Pahang.
This project will help increase
the steel production capacityfrom 3.5 million tonnes to 10
million tonnes annually with
the introduction of steel plates
as a new product.
“The project will create 3,000
job opportunities for thepeople of Pahang and spur
local economic growth. Eighty
per cent or 2,400 jobs will be

opened for Malaysians,” he said
in a statement after witnessing
thememorandumof
understanding (MoU) signingceremony for the second plant
expansion project between the
Pahang government and ASSB
at Wisma Sri Pahang today.
Meanwhile, Wan Rosdy said
the Pahang government isalways committed to provide
a conducive environment to
attract investors to expand theirbusinesses across the state.
“Last year, Pahang managed
to attract investments worth
RM10.5 billion which consistsof RM987 million domestic
investments and RM9.8 billion
foreign investments.
“Besides providing a conducive
environment,
the
state
government will also ensure
political stability to convince
investors to come to Pahang.
We are looking forward to more
foreign direct investments this
year.
“The
Pahangis striving togovernment
ensure thestate can be developed in acomprehensive and balancedmanner for the welfare andbenefit of the people. We arecommitted to ensure Pahangachieves its key performanceindicator (KPI) for this year
to secure investments worth
RM18 billion,” he said.
Pahang state secretary Datuk
Seri Dr Sallehuddin Ishak
signed the MoU on behalf of
the Pahang government while
ASSB was represented by its
chief executive officer Steve
Hujiulin.

14

The Steel Advocate ISSUE 1 • 2022

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supply to all industriesKISWIRE SOUTH-EAST ASIA REGIONAL HQ

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(Tel) 60-7-340-4000 (Fax) 60-7-332-8950
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ISSUE 1 • 2022 The Steel Advocate

15

MSI Flood Relief

Programme 2022
On 16 December 2021, a tropical depression
created landfall on the eastern coast ofPeninsular Malaysia, bringing torrential
downpours throughout the peninsula forthree days. The resulting floods affected eightstates across the peninsula.
It is the worst flood in the country in termsof displaced residents since the 2014–2015
Malaysia floods. Hence, government officials
declared the situation as a “once in a century”
disaster. It has also been historically comparedwith the 1971 Kuala Lumpur floods.
Record-high precipitations were measured
at weather stations at Selangor and Kuala
Lumpur. Widespread damages were reported
at the states of Selangor and Pahang,especially the district of Hulu Langat and thecity of Shah Alam. Scientists, climate activists,
and the media have largely made connectionsof this disaster as an example of extreme
weather attributed to climate change.
This tragedy affected many victims, including
many who were MITI and agencies’ members.
Those affected were given the necessary
assistance by the Ministry of International
Trade and Industry (MITI).

As an agency under MITI, Malaysia Steel Instituteplays the role to help those in need by organising
the Flood Relief Programme to act as the collection
centre for contributions from steel players. The
Minister also recognized the steel players who havepitched in and offered their help together with theministry’s effort in aiding the flood relief activities.
Among those who lend their hand were fromthe Lion-Parkson Foundation, Malaysian Iron andSteel Industry Federation (MISIF) and Malaysian
Steel Association (MSA), who have contributed
either in cash or in kind. The basic necessity items
comprising baby and adult diapers, pillows andtowels, blankets, rice cookers and mattresses weresent to MITI in batches.
The Flood Relief Programme received contributions
from steel industries amounting RM147,000 which
was collected and handed over to MITI Club. This
programme was carried out during January 2022.

16

Metal Scraps (Steel)

Importation

The Steel Advocate ISSUE 1 • 2022

Control Order (MCO) and it slightly rebounced back in 2021 after the MCO was
lifted. Same situation happened to the metal
scrap importation.
Many local recycling centres sell the scrap
metals by weight, often at prices below theimported price. Hence, the local recycling
centres export the metal scrap for higher
price, taking advantage of the 0% export
duty implemented in 2016 and the good
currency exchange, which indirectly cause
the shortage of metal scrap locally. In orderto resolve the shortage of metal scraps, anexport duty of 15 % has been imposed in 2020.

Introduction
Metals are valuable materials that can be recycled
repeatedly without altering their properties. They can
be classified as ferrous, or non-ferrous. Ferrous metals
are combinations of iron with carbon, namely: carbon
steel, alloy steel, wrought iron, and cast iron. On theother hand, non-ferrous metals include aluminium,
copper, lead, zinc, and tin. Steel is the most recycledmaterial on the planet followed by aluminium,
copper, silver, brass, and gold (precious metals).
People are motivated to collect and sell the metal
scrap to recycling centre because of its value. Besides
the financial incentive, recycling of metal also helps
to preserve natural resources and reduce the energy
required to process compared to using virgin raw
material (iron ore) and pollution (air and water). Most
importantly, it allows manufacturing businesses toreduce their production cost and also creates jobs.
Scrap Metal (Steel) Price and Consumption in
Malaysia
Malaysia’s steel industry is a large consumer ofimported ferrous scrap. In the past several years, thenation has also grown as a leading destination for theworld’s non-ferrous scrap, with secondary aluminium
alloy and brass producers thriving in the nation.
The average of Malaysia metal scraps (Steel)consumption is around 3.3 million MT per year(2017 – 2021). The consumption in 2020 declined by
17 % compared to 2019 due to the slowing down ofproduction activity during the nation’s Movement

In Malaysia, Basic Oxygen Furnace (BOF) uses
8 % to 15 % metal scraps to make new steel.
The variation of metal scraps consumption in
BOF is very much dependent on the price ofiron ore, if the price of iron ore is high thenmore metal scraps will be consumed. BOF
steel usually contains lower concentrations ofresidual elements compares with Electric Arc
Furnace (EAF) steelmaking that uses almost
100 % metal scraps which contains greater
concentrations of residual elements thatcannot be removed through the applicationof oxygen and lime. Ladle refining furnace isused to further refining the molten steel toproduce high grades/quality steel. Hence,
installation of ladle refining furnace is a mustfor the Induction Furnace (IF) manufacturers
to produce high grade/quality steel.
MSI has been collecting weekly metal
scrap (steel) price and yearly consumption,
importation and exportation data since
2018. However, only the weekly metal scrap(steel) price is made available to the public;
the yearly consumption, importation andexportation data are available specifically to“MSI members”.

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ISSUE 1 • 2022 The Steel Advocate

Implementation of Guidelines for Importation
and Inspection of Metal Scrap
Malaysia, which has in recent years emerged asa recycling hub for metal scrap whereby 0.3 % of
e-E-waste was imposed in third quarter of 2019
until 31 December 2020.
Based on the number of containers detained
due to illegal dumping of scheduled waste in
2021 (Data source: Presentation paper: Kertas
Pertimbangan Cadangan Penetapan Had
Batasan Kandungan E-Waste Dalam Sekerap
Logam yang Diimport ke Malaysia”), out of 108
containers, 97 of them involved HS code formetal scrap, which is equivalent to 90% of illegal
importation consisting of insulating plastic
waste, used engine, inhomogeneous metal scrap,
etc. Those metal scrap might be imported andchannelled to illegal factories where the metal
scraps are not managed in an environmentallyfriendly manner.
For environmental reasons, the importation of

metal scraps to Malaysia currently under thepurview of Ministry of International and Trade
Industry (MITI) has initiated a stricter guidelines
on the importation where only high-grade metal
scraps are allowed to be brought in. The new
guidelines were prepared by the committee
members
encompassing
representatives
from MITI, Malaysia Investment Development
Authority (MIDA), Department of Environment(DOE), Ministry of Environment and Water (KASA),
National Solid Waste Management Department(JPSPN), Royal Malaysian Customs Department(RMCD), Port Authority/Port Operation and
SIRIM. During the developmental phase of the
new guideline for metal scraps importation
with 0 % of E-waste, a few consultation sessions
were carried out with the stakeholders in orderto further enhanced and fine-tuning the new
guideline before it comes into force. The interim
measure period has been extended a few times
by MITI, allowing the industry to undertake thenecessary preparations to bring forward thecertificate of approval (CoA) and to comply with
the new guidelines.
Through a media release on 30th December
2021, MITI announced that the effective
implementation date is 10th January 2022.
All metal scraps and waste paper intended
to be imported into Malaysia are subjected toinspection process and issuance of Certificate ofApproval (COA) as per the Customs (Prohibitionof Imports) (Amendment)(No.2) Order 2022.
It is very important for the industry to support
the objective of this new guidelines in facilitating
genuine importation, while protecting ourenvironment from harmful substances, whichis also in line with Malaysia’s commitmentprescribed through the United Nations
Sustainable Development Goals, Goal 12: Ensure
Sustainable Consumption and Production
Patterns.
The criteria imposed in the new guidelines is asfollows:

INSPECTION CRITERIAREQUIREMENT (% BY WEIGHT)
HS Code 7204

HS Code 7404

HS Code 7602

Solid Ferrous

Minimum: 94.75%

Maximum:
5.0 %Maximum:
5.0 %Solid Non-Ferrous

Maximum: 5.0 %Minimum: 94.75%

Minimum: 94.75%

Other recoverable material including plastic

Maximum: 0.25%

Maximum: 0.25%

Maximum: 0.25%

Scheduled waste including electrical and electronic

0%

0%

0%

Total

100%

100%

100%

(Ferrous waste andscrap; re-melting scrap
ingots of iron or steel)(Copper waste andscrap)(Aluminium waste or
scrap)

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The Steel Advocate ISSUE 1 • 2022

All inspected and approved metal scraps shipments would have to meet a 94.75 % (solid ferrous/
solid non-ferrous) content threshold with a maximum of 0.25 % recoverable materials including
plastic and 0% of E-waste (including electrical & electrical).
The metal scrap shipments can either be by sea or land. In order for the importers to select theimported method that suit them most, there are four (4) type of methods available for selection
as follows:
Methods
Without SIRIM Approved MRF

Requirements/Processes

With SIRIM
Approved MRF

Type 1A

Type 1B

Type 1C

Type 2

Sea & Land

Sea & Land

Sea only

Sea & Landi) Manufacturer – has ML/ICA 10ii) Trading arm company – has MOA and approved
invoices with ML/ICA 10 manufacturing companies









SIRIM Certification/Eco-label Certification License/
Annual Inspection or Verification Services









Done by FIB(with MoA
with SIRIM

Done by FIB(without
MoA with
SIRIM)

Not required.
However,
inspection
report issued
by SIRIM
approved MRF
is required











Mode of Transport

Pre-shipment inspection (at Country of Origin)

Done by
SIRIM

Post-shipment inspection (Off-Board – Inside Port of
Entry)



Issuance of Certification of Approval







Inspection at Factory Storage Yard
Keys:
ML-Manufacturing License
FIB-Foreign Inspection Body
-Not required- Required(Done bySIRIM)MRF-Materials Recovery Faculty(Source: Guidelines for Importation and Inspection of Metal Scrap, January 2022, Edition No: 1)

All metal scrap export cargoes/containers to Malaysia have to be subjected to a pre-shipment
inspection process at the country of origin except those applied under Type 2, where the MRF
have been approved by SIRIM QAS via annual audit.
Besides the abovementioned documents, submission of CoA application also requires theattachment of “Bank Guarantee” for the purpose of security for compliance. The amount of bankguarantee is calculated based on the maximum shipping cot including all incidental costs for
returning the non-compliance metal scrap back to the country of origin. The bank guarantee
shall be forfeited in the event of non-compliance or any false declaration, etc.
For pre-shipment Inspection, SIRIM QAS encourages overseas inspection agencies or companies
to apply as an accredited foreign inspection body (FIB) so that pre-shipment inspection can bedone at the country of origin. The advantage of appointing FIB [Memorandum of Agreement(MoA) with SIRIM QAS)] is post-shipment inspection will not be required when the metal scrap
reached the Port of Entry which would reduce the hassle in term of cost and time.
For SIRIM QAS approved MRF, pre- and post- shipment is not required but the inspection atfactory storage yard is necessary in order to ensure the criteria set is always met.
The list of approved FIB with/without MOA and approved Materials Recovery Facility (MRF)
is available at SIRIM QAS website: https://www.sirim-qas.com.my/our-services/inspection/
importation-of-scrap-metal-and-waste-paper/
The “Checklist for Importation and Inspection for Metal Scrap” (available at SIRIM QAS website)
provides a list of documents required for metal scrap importation to assist the applicants tofacilitate a smoother applications.
SIRIM QAS website contains a lot of useful information that would assist you for importing themetal scraps. You may refer to SIRIM QAS website at: https://www.sirim-qas.com.my/our-services/
inspection/importation-of-scrap-metal-and-waste-paper/

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ISSUE 1 • 2022 The Steel Advocate

An Overview of

Mycron Steel Berhad
MycronSteelBerhad(“Mycron”) encompasses the
combined operations of two
subsidiaries, namely Mycron
Steel CRC Sdn Bhd (“MSCRC”)
and Melewar Steel Tube Sdn
Bhd (“MST”). MSCRC is involvedin the mid-stream sector of
the steel industry, converting
Hot Rolled Coil steel sheets
into thinner gauge Cold Rolled
Coil steel sheets while MST is
involved in the down-stream
sector, specifically in the
manufacturing of Steel Tubes
and Pipes. Mycron Group has
a total workforce of over 400
personnel.

Mycron Steel CRC Sdn Bhd

MSCRC, a wholly owned
subsidiary of Mycron Steel
Berhad, was incorporated on 6
January 1989 and commenced
operations in June 1990. Mycron
is the Malaysia’s first Cold
Rolled Coil manufacturer andthe only Bumiputera-owned
steel company in Malaysia.
MSCRC’s 18-acre site is locatedin Shah Alam, and currently
has an installed capacityof 260,000 metric tonnes
per annum. Over the years,
continuous investments weremade to acquire state-of-theart machinery and equipment
to cater to various needs ofcustomers.
Its
production
facilityisequipped
withcontinuous pickling line, 6-highcold reduction mill, electricalcleaning line, recoiling line,
and combined skin pass milland tension levelling line. Its
manufacturing plant is also
equippedwithchemical,mechanical and metallurgicaltesting laboratories.

Over three decades since
its inception, MSCRC now
boasts a diversified client
base, supplying to drum
manufacturers,
galvanizing
and roofing industries, steel
cable trucking industry, pipeandfurniture
producers,
automotive
manufacturers,
electrical and home applianceindustries.

Melewar Steel Tube Sdn Bhd
Melewar Steel Tube Sdn
Bhd (“MST”), a wholly owned
subsidiary of Mycron Steel
Berhad,wasincorporated
on 24th February 1969, asa Malaysian-Japanese joint
venture into the steel pipe
manufacturing industry.
In January 1970, the company
began its very first production
with only a single production
line at its factory in Jalan Pasir
Gudang, Shah Alam. Within two
years, the company expanded
its operations through theestablishment of its second
factory on a 7-acre site in ShahAlam. In 1982, the company
commemorated the openingof its third factory at Persiaran
Selangor, Shah Alam. MST’s
corporate headquarters wasbuilt in 1990 at Lot 53, Persiaran
Selangor, Shah Alam.
At present, MST has an installedcapacity of 148,800 metrictonnes per annum with theability to manufacture pipes
ranging from 10mm to 400mm
O.D. MST’s products are widelyused in the construction,
furniture, automotive, bicycle,
and engineering industries.
After more than five decadesof experience in the steel

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The Steel Advocate ISSUE 1 • 2022

pipe industry, the brand MIGMELEWAR
andAURORA
Conduit spells quality, having
established its name in thesteel pipe industry where its
products are highly acclaimed
by both local and international
consumers.

Standard.
In
2019,
MST
successfully obtained the Logo
Buatan Malaysia certificationfrom the Ministry of Domestic
Trade and Consumer Affairs for
its AURORA conduit and coldrolled products.

QualityAsanenvironmentallyconscious
organization,
Mycronplacespivotalemphasis in ensuring continual
improvement of environmental
performance across its entire
business operations.

Bothoperatingsegments
constantly
endeavourtoimprove operational excellence.
MSCRC achieved its first ISO
9001 certification in 1996,
followed by MST in 1997. Overthe years, MSCRC and MST haveestablished a more effective
Quality Management System
to adapt to the latest global
challenges. In 2016, MSCRC
obtained product certification
by SIRIM in recognition of its
product quality complianceagainstthe
MalaysianStandard
andJapanese
Industrial Standard. MST, on
the other hand is continuously
improving the quality of its
products and process with avariety of certifications suchas the EC Factory Production
Control
CertificationandCE Marking from Lloyd’s
Register, Perakuan Pematuhan
Standard (Bahan Binaan) from
CIDB Malaysia, and EMAL
certification from Cawangan
Kejuruteraan Elektrik Jabatan
Kerja Raya Malaysia. The
quality of MST’s products
meets the requirements ofBritish Standard and American

Environmental

In June 2014, MSCRC obtained
the international standard forEnvironmental Management
SystemsISO
14001:2015.
Subsequently in 2020, thecompany was awarded the
SIRIM Eco-Label Licence andwas granted the rights to use
the “MyHIJAU” mark on its
products. MSCRC has beenproactively managing its energy
consumption with a set targetof 10% bi-annual reduction inenergy consumption since2017. In its effort to efficiently
manageenergy,MSCRC
emerged as one of the winners
in the National Energy Awards(NEA) 2021 under the “Energy
Management in Large Industry”
category. MSCRC’s investment
in advanced pickling and acidrecovery technology aims to
improve the business’s overall
conversion cost, expand into

new market segments, andreduce environmental impact.
MST successfully upgraded its
galvanizing plant furnace froma conventional design furnace
to a fuel-efficient furnace. To
further drive its sustainability
efforts, MST’s new solar panel
system has been in operation
since March 2021. This solar
system is expected to reduce
MST’s annual carbon footprint
by approximately 432 metrictonnes of CO2.

Health and Safety

Occupational health and safety
is a top priority for Mycron.
Health and safety features
are embedded in Mycron’s
production line and systems;
workflows; procedures andprocesses;
and
are
also
regulated by the “Occupational
Safety and Health Act” and the“Factories and Machinery Act”,
which combined, covers wide
ranging regulations involving
licensing, machinery upkeep,
environmental management,
and staff welfare. The Mycron
family works vigorously tocomply with all the healthandsafetyregulations
where each steel unit hasestablished their own Healthand Safety committee aided
by the designated officers tooversee initiatives, awarenessandtraining,
incident
management, and compliance.

ISSUE 1 • 2022 The Steel Advocate

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The Steel Advocate ISSUE 1 • 2022

The Importance ofData for Business
Malaysia’s Iron and SteelExternalTraderegisteredanother historic performancein 2021, totalling RM62.9 billion
compared to RM48.2 billion in
2020. The export and importfrom the iron and steel industry
ranked 9th and 6th respectivelyinmanufactured
goods,
indicating the importance of
the industry to the nation’s
economy. The above facts
demonstrated
that
each
and every part of a business
nowadays is being tracked,
measured and shared in theform of tabulated data, charts,
infographics and the like.

• Apparent
Steel
Consumption. In situations
where estimates exist forthe production of certain
goods within geographicalboundaries, trade analysis
can help estimate the local
demand for that certain
goods and services. Thisestimation of demand or
market size for a productwithin a country, takes
into account a nation’s
production as well as its
imports and exports.
Apparent
Consumption= Domestic Production –Exports + Imports

The
modernbusinessmarketplace is a data-driven
environment, of which data
analysis will continue to play
important role in strategic
decision making. For example,
analysis of trade data canpotentially be used to assist in
the business decision making,including;• Trend over time. In an eraof escalating trade tensions,
import and export data can
explain how trade policies
impacted the global andregional flow of goods. New orincreasing trade barriers canalter how production inputs
are used across industries,
and these changes canbecome evident upon crossreferencing of trade data
sources.
• Supply
Chain
Insights.
Finished products are often
the result of inputs fromcountries across the globe.
Trade analysis can determine
how raw materials andinputs flow across regions
and identify the countries
that supply the bulk ofmaterial for production.
Apart from providing an insight
to external business, data also
helps a business to understandand improve internal process
for example;• Better
decision-making.
One of the key benefits ofextensive data analysis isbetter decision-making, aslack of comprehensive dataand information could slow
down actions and measurestaken.
Comprehensive
data are required to ensure
quality measurement canbe made to avoid any losses
or increase in costs that may
be passed down the value
chain.
• Business
Matching
Activities.
Comprehensive
database will be able tohighlight the iron and steel
industry’s current backward
and forward linkages, and it
should be used as a catalyst
to further accelerate theplayers through the businessmatching exercise, thereby
further strengthening thelinkages.

ISSUE 1 • 2022 The Steel Advocate

Malaysia Steel Institute (MSI) is responsible in collecting,monitoring and developing a comprehensive database of theiron and steel industry. MSI is currently monitoring crude steel
production, whereby a large range of other industry data is
still highly fragmented. The objective of data collection by MSI
is to develop a comprehensive database, encompassing all
economic data across the iron and steel industry value chain.
The database aims to provide key insights of the industry withregards to industry profiling, new investment opportunity, tradeperformance, industry competitiveness and policy decision
making. MSI will continue to cooperate with all stakeholders in
the data collection and data sharing for better reporting as wellas to reflect the current performance of the Malaysian Iron andSteel Industry.

23

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The Steel Advocate ISSUE 1 • 2022

Training for

Malaysian Iron
and Steel Industry
The global steel industry is the critical backboneof the industrialised value chain. An essential
base material for significant sectors such as
construction, automotive and aerospace, steel
is a centrepiece of innovation and economic
growth. But despite steel’s importance for theindustry today, the steel industry is still struggling
to recover from the aftermath of the pandemic.
The development of the industry is dependent
on high-quality talent team, while educationand training are indispensable and provide animportant platform for talent team development.
Based on the practical experience of carryingout training in the industry in recent years, astrategic way to carry out targeted, effective
and forward-looking upskilling training should
be in place, giving full play to the training effectand help steel industries to improve the qualityof its existing workers, the ability to grow andfurther develop the industry, coordinating withthe progress of the industry, and implement anactive explorations for steel industry to achieve
competitiveness.
Currently, the iron and steel industry does notconduct structured training for their existing
workers to upgrade their skill level; while training
is available in most steel companies throughon-job-training (OJT) but the lack of structured
and planned training exercise has created anincomplete training for the employees in this
sector.
Malaysia Steel Institute (MSI) has proposedto the Government to conduct The Iron andSteel Industry Training Programme under the
Twelfth Malaysia Plan. The module Upskillingof Specific Technical Knowledge Training istargeted towards existing workers, aiming toprovide relevant training pertinent to upskillingthe knowledge for the participants which include
practical demonstration. It is a 10-day training to
upskill existing local workers in a specific skill set

to address the issue of Malaysian iron and steel
industry relying on foreign expertise due to thelack of local expertise in some areas, where themodules proposed to train local talent to fillexpatriate vacancies are as follows:a. Steelmaking Process & Product Quality;b. Rolling Mill Process & Product Quality; andc. Blast Furnace Process.
The objectives of Upskilling of Specific TechnicalKnowledge Training are as follows:
1. Train existing employees in the Iron & Steel
Industry in Specific Technical Knowledge to
become local experts.
2. To replace foreign expertise in the long run.
3. Provide important skills training to the ironand steel industry.
With the above modules, it is expected that theobjective to train existing employees in the Iron
& Steel Industry in Specific Technical Knowledge
to become local experts and to replace foreign
expertise in the long run can be achieved.
Steel companies participated in module Extensive
Training targeting new workers under the Iron
and Steel Industry Training Programme areISSUE 1 • 2022 The Steel Advocate

satisfied with the programmes as they recognisethat knowledge, skill and attitude of employees
provide an advantage to face competitors andto meet changes in environment. Based on theinformation gathered from feedback regarding
the training programmes, companies noticed
a significant different on their new employees
compared to those never join MSI training
programmes.
The Extensive Training targeting new workers
consists of 15 days intensive classroom training
and 1-3 months of on-job-training (OJT) in
the iron and steel industry. The programme
objective is to produce local skilled workers in theiron and steel industry, absorb local talent into
the iron and steel industry and eventually reduce
dependency on foreign worker. As of today June
2022, MSI has trained 302 participants with job
placement in the Iron and Steel Industry underIron and Steel Industry Training Programme
since October 2021.
On the other note, MSI has completed trained
and placed 300 participants under Reskillingand Upskilling Programme under PENJANA
Initiative, the training programme name is
Enhanced Employability of Unemployed Workers

25

26

and New Graduates in The Iron and Steel Industry.
It is a Customised Trained and Placed Programme
for local unemployed workers / talents to workin Iron and Steel industry as skilled workers to
reduce dependency to expatriate / foreign worker,
the programme was conducted from July 2021 toMarch 2022 to support the recovery of Iron andSteel Industry post COVID-19 pandemic.
A unique approach is taken to provide customised
training which takes into account issues related tocurrent challenges to the industry. Malaysian ironand steel industry needs to have a comprehensive
understanding on existing skills needs andshortage based on industry requirement. The
upskilling programme needed will be different
compare to those before the COVID-19 as theindustry has adopted the new working norm
during this pandemic COVID-19. MSI will embark
on conducting customised HRD Corp claimabletraining programme for the industry to train skilledworkers in upskilling, management, safety, as wellas Environmental, Social, and Governance (ESG).
According to Bank Negara Malaysia on 13 May 2022,
the Malaysian economy registered a positive growthof 5.0% in the first quarter of 2022 (4Q 2021: 3.6%).
This was mainly supported by improving domestic
demand as economic activity continue to normalise
with the easing of containment measures. The
improvement also reflects the recovery in the job
market, with the unemployment rate declining
further to 4.1% (4Q 2021: 4.3%), as well as continued
policy support. Iron and Steel Industry Training
Programme is just in time to train skilled workers
for iron and steel industry to provide the necessary
support for the Iron and Steel Industry to recover.
Company or individual interested to participate theprogramme could contact:
Leon
leon@malaysiasteelinstitute.com or 012 669 2491 orAmier
amier@malaysiasteelinstitute.com or 019 474 6159

The Steel Advocate ISSUE 1 • 2022

ISSUE 1 • 2022 The Steel Advocate

27

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The Steel Advocate ISSUE 1 • 2022

Designing Future Autonomous
Vehicles for Use in a ‘Mobility
As A Service’ Modeltwo vehicle concepts; thesmaller four passenger “SEM1”
variant is intended for innercity journeys and the larger
six passenger variant (SEM2)
intended for longer inter-city
journeys.
Autonomous vehicles of the
future will require many new
innovations.
This
includesdevelopment in electrical andcontrol systems in the formof radar and lidar sensors
andchangesinvehiclearchitectureor
structure.
Autonomous vehicles create
opportunities
andpresent
different requirements, and thestructure of vehicles will needto adapt to that.

By Worldsteel Association
Transport and the way people
use it is changing. In the next
20-years, urban mobility is
expected to be transformedby the widespread roll-out
of fully autonomous vehicles
operating within a ride-hailing,mobility as a service (MaaS)
model. This will enable people
living in and visiting cities toplan, book, and pay for multiple
types of mobility services
through a digital channel.
This new model could enhance
our experience of taking ajourney. We will be safer,more comfortable and enjoya higher level of convenience.
Our concern about the cost of
the daily commute may also
become outdated, as there
are also great cost savings to
be made both for transport
providers and users.
As part of this shift, fullyautonomous vehicles operating
under a MaaS model have thepotential to solve some of thebiggest transport challenges

that the world faces, namely,
the environmental impacts ofroad vehicles such as reducing
road traffic congestion andaccidents, greenhouse gases
and pollutants, and providing
solutions for people whocurrently have limited accessto transport. These solutions
will be realised when MaaS is
integrated with existing modesof public transport like trains
and busses. If we all movetowards private ride hailingservices (one autonomousvehicle per person, per journey)
the problem will not be solved.
Advanced High-Strength
Steels will enable futuretransportation challenges
The Steel E-Motive projectis a collaboration between
WorldAutoSteel and Ricardo,
whichdemonstrates
thesuitability of the latest Advanced
High-Strength Steel grades
for use in a fully autonomousvehicle, engineered for a MaaStransport model.
We areworking together to develop

The Steel E-Motive program is woking to develop twovehicle concepts for MaaS applications.

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ISSUE 1 • 2022 The Steel Advocate

Addressing population
growth and demand fortransportation
Autonomousvehiclesoperating in a ride sharing
MaaS model alongside otherpublic transport will help tomeet the challenge of servinga growing global population,
while providing a sustainabletransportsolutionaroundand between cities. With
ride sharing, the number ofsingle-passenger
vehicleson the road drops, reducing
trafficcongestion,
leading
to an increase in capacity
for passenger numbers andjourneys.

The body structure designsof the Steel E-Motive vehicles
also have been engineeredtominimisegreenhousegasemissionscreatedduring vehicle manufacture.
Steel is made in a moreenvironmentally friendly way
than many other materials,
with fewer greenhouse gas
emissions. The Steel E-Motive
vehicles incorporate some of
the latest “reduced carbon”
steel grades in their designandthroughadvancedfabrication processes, achieve
more efficient steel use perpart, meaning less overall steel
production.

This will be important as theglobal population is forecast
to increase by 25% to 9.7 billion
in 2050, with a considerable
proportion of this growth
expected to be in urban andsuburban regions.

Addressing vehicle safety
The
futureoftransport
will be safer than it is now.
Governments, city planners,
vehicle manufacturers andfleet operators already face a
big challenge when it comesto reducing accidents forpassengers and pedestrians
and improving vehicle safety.

Both the smaller SEM1 andlarger SEM2 Steel E-Motive
vehicles are engineered tobe compliant with global
legislation, specifications, andrequirements. This means thatthey can be used in any city
environment.
Addressing theenvironmental transportchallenges in future towns
and cities
As
citiesandsuburbanareas become more heavily
populated, there will be a
growing need to move people
more efficiently and safely,
while supplying sustainable
solutions. Being able to hail aride in an electric autonomousvehicle and share that withothers, will help to reduce
traffic congestion and reducecarbon emissions and otherpollutants.
The Steel E-Motive SEM1 andSEM2 vehicles are ‘all electric’with zero tailpipe emissions thatwill help cut urban pollution.
The vehicle has been designed
to be as environmentallyfriendly as possible during its
complete lifecycle. The aim
is that the electricity source
used for charging will be
provided from an energy mix
that is largely renewable (e.g.,wind, solar). This will reduce
the greenhouse gas emissions
generated during the vehicle’s
lifetime on the road.

Autonomousvehiclesoperating in a MaaS model
can help reduce road traffic
accidents
andfatalities
because the vehicles haveadvanced sensor and control
features that detect potential
collisions and rapidly activate
avoidance measures reducing
accidents caused by humanerror. However, in the earlystages of roll out, these vehicles
are expected to operate
in a ‘mixed mode’, whereautonomous vehicles will be
operating alongside ownerdriven vehicles. This means that
there is still a risk of high-speed
vehicle to vehicle or vehicle-toobstacle collision. To address
this, the Steel E-Motive vehicles
are engineered to meet highspeed
internationalcrashtest standards. Leveraging
the steel industry’s Advanced
High-Strength Steel portfolio,
our vehicles are engineered tothe demands of MaaS, meetstringent vehicle safety targets,and deliver optimal mass, costand comfort.
Addressing passengers’
needs
As with all forms of transport
people will only want to use
autonomous vehicles operating
in a MaaS model if the solution
addresses their needs. The
Steel E-motive vehicle designs
ensure that the product andservice offering is attractive
for people, spurring theirinterest to travel in this way.
These vehicles are designed
to be mass produced at highvolume and to be affordable.
A steel body structure can beproduced at a more competitive
cost than alternative materials.
Autonomousvehicleswillalso be cheaper to run due tohigher operational efficiency in
use and reduced labour costs.
The Steel E-Motive vehicles
have been engineered with
future users’ needs in mind.
The Advanced High-Strength
Steel
body
structureisdesigned to reduce noise andvibration, so that the journey ismore comfortable. The vehicles
are perfect for ride hailing inan urban environment as they
have a flat interior floor, anaccessible ‘step-in height’ anda wide entry door aperture.
Both vehicles feature fourwheel steering, with a generous
turning circle, enabling thevehicles to operate in confined
spaces. This makes it easierfor people to hail and accessthe vehicles in restricted
areas. Awareness of safety andenvironmental challenges ison the rise and the design andfeatures of the Steel E-Motive
vehicles will reassure future
passengers
thattravellingin this way is contributing to
the global drive for safer andsustainable mobility.

The Steel E-Motive vehicle is designed to reduce roadtraffic accidents and fatalities

30

The Steel Advocate ISSUE 1 • 2022

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Tel : 603 7781 1611 Fax : 603 7781 5612
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ISSUE 1 • 2022 The Steel Advocate

Tackling the Challenge of

Decarbonizing Steelmaking
By Ajitesh Anand, Toralf Hagenbruch, Anoop Muppalla,
and Benedikt Zeumer, McKinsey, May 2021
The transition toward clean energy anddecarbonization of the fuel mix is one of themost burning topics in heavy industry. The steel
industry is one of the top three contributors to
CO2 emissions, and more than 70 percent ofgreenhouse-gas emissions in the steel industry
are directly linked to use of coal as both fueland reductant. Steelmakers are taking several
steps to decarbonize, targeting this regime forquick results (Exhibit 1). The first step toward thisgoal is focused on emissions reduction and therepurposing of steel through a switch to alternatematerials in steelmaking and efficient productionof long-lasting steel products. Second, operations
can be decarbonized by increasing scrap usage
and carbon-free electricity. Some steelmakers
use biomass as a reductant instead of coal andimplement smart carbon usage to capture andmitigate the release of CO2 emissions.
Exhibit 1
Recent developments in regulations, alongwith commitment among some governments
to reduce CO2 emissions, have led many
steelmakers to set high decarbonization goals incoming years. Steel companies should, therefore,
determine their midterm and long-term paths todecarbonization today (Exhibit 2).
Exhibit 2
While the next decade will likely see processmodifications such as carbon capture andstorage (CCS) and carbon capture and usage(CCU), implementation of new processes willbe critical. One lever for these transitions will be
the reduction of iron ore with hydrogen insteadof coal. However, the determining factor for the
success of this technology will be the availabilityof hydrogen at economic level and at scale.

While CCS and CCU are both medium- and longterm economic options, hydrogen is a growing
opportunity in the face of ambitious international
climate targets. It is one of the few options for
reducing emissions in steelmaking and could
provide renewable developers a competitive
advantage in the current paradigm. According
to McKinsey’s SteelLens, hydrogen-based steel
production could enable steel production that isnearly carbon-neutral (Exhibit 3).
Exhibit 3
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equal access to our website. If you would like
information about this content we will be happy
to work with you. Please email us at: McKinsey_
Website_Accessibility@mckinsey.com
Adopting CCS or CCU technology in existing blast
furnaces would add operational expenditureof approximately €100 per ton 1 of crude steel,and hydrogen-based steel production would
cost approximately €170 per ton of crude steel.
By 2050, with increases in scaled hydrogenproduction and carbon taxes, hydrogen-based
steel production, CCS, and CCU will provide
competitive options for steelmakers (Exhibit 4).
Exhibit 4
We believe that, starting today, decarbonizationof the steel industry would lead to better
outcomes for individual companies. Looking
toward the long-term horizon of building or
retrofitting industrial sites, significant emissions
reductions can be achieved more efficiently
through investment and plans initiated now.

32

The Steel Advocate ISSUE 1 • 2022

Steel Industry Emissions to
Decline 30% by 2050
By Wood Mackenzie, Mining.com, May 2022
Steelindustry’s
carbonemissions are expected tofall 30% by 2050 compared to2021 levels, according to a newreport by Wood Mackenzie.

Technology Share

Steel is a challenging sector todecarbonise. However, evolving
green steel goals are altering
the supply landscape andsteelmakers are under pressure
from stakeholders to reduce
their reliance on conventional(highly polluting) blast furnaceroute and adopt low-emission
alternatives.

Steel production in Mt
Inner Pie
: 2021
Outer Pie
: 205030%

48%

Carbon Emissions (MtCO2e)

178

Emissions
CCUS

2021

2,332

The scrap-EAF route is theleast polluting among available
technologies. This makes scrap
a sought-after metallic bysteelmakers. Scrap blending
will potentially increase in
the blast furnace route withquality enhancements andconverter retrofits. DRI will also

2,315

3,338

“Together with green hydrogenbased direct reduced iron (DRI),
scrap use and adoption ofcarbon capture, utilisation andstorage (CCUS), steel industry’s
carbon emissions can decline
30% from current levels by
mid-century.”

1,952

million tonnes“The global share of electric arc
furnace (EAF) in steelmaking
is rising with policy shifts andincreasing focus on scrap
use. Basic oxygen furnace(BOF) output will decline 0.5%
annually until 2050, whereas
EAF output could increase 2.3%
yearly in the same period. By
2050, EAF will account for 48%
of the technology share usedin steelmaking, up from 30%
last year, making it almost on
par with the traditional BOF
method,” Wood Mackenzie
research director Malan Wu
said.

BOF

EAF

30%

decline insteel CO2
emissions2050
Source: Wood Mackenize

33

ISSUE 1 • 2022 The Steel Advocate

receive a boost, primarily due
to commercial adoption of thehydrogen-based route.
The steel industry is expected
to commence hydrogen use
as early as 2027, with EU taking
the lead. Hydrogen-based steel
production
will
eventuallyaccount for 10% of the total
steel output or 232 million
tonnes (Mt) by 2050. Wood
Mackenzie projects that 40% of
DRI produced by mid-century
will be hydrogen-based.
Carbon offset measures such as
CCUS will lend further support.
Wood Mackenzie believes thatthe steel industry will be able tocapture, store and potentially
utilise around 178Mt of theresidual emissions. This will
make up 5% emission savingsof the 30% carbon emissions
decline by 2050.
“Blast furnace gas emissions arecomplex, and it is challenging
to separate carbon from them,”
Wu said. We assume thattechnologicaladvancement
and bulk efficiencies will allow
a maximum capture rate ofabout 20-25% in advanced
economies such as the US andEU.”“Capture
rates
can
be
improved by increasing thereliance on smelting reduction
technologies such as HIsarna
and Corex, that produce topgas with much higher carbon
concentrations. This will makeit easier to separate carbon
from other impurities. However,these technologies have yet toprove their commercial viability,
even after being deployed in
Asia and Europe.”
China is expected to take thelead in reducing absoluteemissions. Wood Mackenzie
estimates Chinese emissions
to halve between 2021 and
2050, and a major proportion ofemissions reduction will comefrom the projected fall in steel
output.

Mature economies such as
Japan, Korea, Taiwan, EU, UK
and US will need to do more to
curb emissions as developing
nations will be slow adopters
and
small
contributors
to emissions cuts. These
economies will abate emissions
by nearly 50% from current
levels while maintaining or
increasing their steel output.
India and Southeast Asia willin turn worsen their emission
profile as their crude steel
production
rises
throughthe
BF-BOFroute.
The
aggregate emission intensity
in these regions will improveas production triples andcarbon emissions will in turndouble from current levels.
Decarbonisation initiatives inthese regions will intensify inthe second half of the forecasthorizon.
“The onus will be on matureeconomies to decarbonise
quickly. These economies will

look to pare down emissions
by switching to EAF, which isthree-quarters less emissionintensive than the blast furnaceroute,” Wu said.
India and Southeast Asia, thekey demand drivers, will buckthis trend as most capacity
additions are via the BF-BOF
route. However, nearly twothirds of incremental supply
between 2021 and 2050 willmaterialise from India andSoutheast Asia – cushioning
the negative impact on hot
metal.”

34

The Steel Advocate ISSUE 1 • 2022

35

ISSUE 1 • 2022 The Steel Advocate

Steel in

Buildings andInfrastructure
By Terrence Busuttil, Worldsteel Association
Construction is one of themost important steel-using
industries,
accountingformore than 50% of world steel
demand.
Buildings – from houses to
car-parks to schools andskyscrapers – rely on steel for
their strength. Steel is also usedon roofs and as cladding forexterior walls.
The world’s population is
expected to increase by 2
billion persons in the next 30
years, from 7.7 billion currently
to 9.7 billion in 2050, according
to a new United Nations reportlaunched in 2019.
This will be accompanied by
rapid urbanisation. As the needfor buildings and infrastructure
continues to grow worldwide,
reducing
consumptionof natural resources andassociated emissions is crucial
for future sustainability.
Whilsttheoperationofbuildings accounts for 28%
of global CO2 emissions (cf.
footnote below), they alsopresent many opportunities
for reducing emissions andmitigating climate change.
Steelmakers around the worldareincreasingly
providingconstruction solutions thatenable energy-efficient andlow-carbon-neutral buildings.
For example in the HAMK
Sheet Metal Centre (Finland)– a near Zero Energy Building(nZEB), steel solutions brought
down the cost of electricity
and district heating to €5,200
per annum from €12,400(reference building).

Not only is steel affordable,
readily available and safer, its
intrinsic properties, such as
strength, versatility, durabilityand 100% recyclability allow
for improved environmental
performance across the entire
life cycle of buildings.
The advanced high-strength
steels used in steel-plate
applications also find uses in a
number of related industries.
Offshore oil rigs, bridges, civilengineering and construction
machines, rail carriages, tanks
and pressure vessels, nuclear,thermalandhydroelectric
plants – all these applications
benefit from the attributes ofmodern steels.

How steel is used in buildings
and infrastructure
The possibilities for using steel
in buildings and infrastructure
are limitless. The most common
applications are listed below.
For buildings• Structural sections: theseprovide a strong, stiff frame
for the building and makeup 25% of the steel use inbuildings.
• Reinforcing bars: these
add tensile strength andstiffness to concrete andmake up 44% of steel
use in buildings. Steel isused because it binds
well to concrete, has asimilar thermal expansion
coefficient and is strong

36

•

•

•

The Steel Advocate ISSUE 1 • 2022

and relatively cost-effective.
Reinforced
concreteisalso used to provide deep
foundations and basements
and is currently the world’s
primary building material.
Sheet products: 31% is in
sheet products such as
roofing, purlins, internal
walls, ceilings, cladding,and insulating panels forexterior walls.
Non-structural steel: steel
is also found in many nonstructural applications inbuildings, such as heating
and cooling equipment
and interior ducting.
Internal fixtures and fittings
such as rails, shelving andstairs are also made of steel

For infrastructure• Transport networks: steel
is required for bridges,
tunnels, rail track and inconstructing buildings suchas fueling stations, train
stations, ports and airports.
About 60% of steel use inthis application is as rebar
and the rest is sections,plates and rail track.
• Utilities (fuel, water, power):over 50% of the steel used
for this application is inunderground pipelines to
distribute water to and fromhousing, and to distributegas. The rest is mainly rebar
for power stations andpumping houses.
[1] Buildings are currently
responsible
for
39%
of
globalenergyrelatedcarbon emissions: 28% fromoperational emissions, fromenergy needed to heat, cooland power them, and theremaining 11% from materials
andconstruction.
(https://www.worldgbc.org/embodiedcarbon)

Benefits of using steel inconstruction
Steel:
1. Is reusable and endlessly
recyclable.
2. Contains at least 25%
recycled steel. (1)3. Enables
energyefficiency in buildings
andconstruction
projects.
4. Strong, requiring fewer
beams and providing
more usable open space.
5. Light, requiring reduced
foundations.
6. Less material implies
resource saving and alesser impact on theenvironment.
7. Flexible in combination
with other materials.
8. Earthquake
resistant
due to steel’s ductility.
9. Fast on-site build for
prefabricated buildings.
10. Durable.
(1) Steel Recycling Institute (www.
steelsustainability.org/-/media/recyclingresources/steel-sustainable-materialbuilding-construction.ashx)

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38

The Steel Advocate ISSUE 1 • 2022

Net-zero steel
in building andconstruction:

The way
forwardBy Pedro Assunçāo, Brodie
Boland, Trevor Burns,
Emanuele D’Avolio, Alasdair
Graham, Focko Imhorst,
Ingrid Koester, Carl Kühl,
Rory Sullivan, and Alex
Ulanov, Mc Kinsey,
April 2022

Rising demand for greener
approaches
createsanimperative for the industry to
seize the moment, adopt new
mindsets, and set standards
for the transition to a greener
future.

such as green steel are more
expensive, and will therefore
demand a new pricing model.
However, they can significantly
reduce embodied carbon—in
commercial buildings by asmuch as 70 percent by 2030.

As the world transitions to lower
greenhouse-gas
emissions,construction companies havea major role to play. In making
the green buildings of the
future, they have a chance totap into demand that spans
geographies and architectures.
Indeed,greenerbusinessmodels are potential magnets
for trillions of dollars earmarked
for sustainable investment. In
addition, companies that adapt
effectively will ensure they arealigned with an increasingly
stringent regulatory agenda.

Amid tight industry margins,a priority for decision makers
will be to ensure that there is asolid business case for change.
The key in that regard will beto establish market position,
while adjusting to a new costbase. They must also ensurethat greener business models
are aligned with demand thatwill rise at an uncertain paceover time. A tricky calculationis required, but the prize is achance to get ahead in a market
that is set for a potentiallyrewarding future.

The
decisions
madebyconstruction executives now
will determine how they are
positioned for the transition
over the coming decade.
Those that prepare astutely
are likely to seek out emerging
pockets of innovation and dial
up investment in sustainable
technologies and capabilities.
To be sure, new materials

Construction
emissionsindustry

From houses to bridges,
hospitals, and skyscrapers,
the construction industry is
responsible for approximately
25
percentofglobalgreenhouse-gas emissions. A
third of these are associatedwithmaterials
andtheconstruction process, or so-called “embodied carbon.” 1
One reason for the industry’s
high emissions is that it is a
voracious consumer of steel,accounting for more than 50
percent of global demand. 2
Due to the energy required forits production, steel is a carbon
mega-producer,
accounting
alone for around a quarter ofemissions in the construction
process. 3 Given these metrics,
decision makers in both steel
and construction need to takestock, consider their options,and plot a realistic path towarda lower climate impact.
Under the Paris Agreement on
climate change, governments
pledgedtokeep
globalwarming below 2°C higher
than preindustrial levels, andideally 1.5°C. To achieve that
goal, human emissions ofgreenhouse gases (GHG) must
fall to net zero by 2050. In theconstruction sector, massivechanges are required to alignwith that pathway. However, by
shifting from high-emissions
steel to near-zero emissions
steel, the industry could take asignificant step forward.

ISSUE 1 • 2022 The Steel Advocate

Decarbonizing steel

Partial steel decarbonization is possible through wider
use of modern furnace technologies, the most efficientof which are powered by natural gas and use energyefficient direct reduced iron or hot briquetted iron
(NG DRI/HBI+EAF) to make steel. These emit muchless GHG than traditional coke-fueled blast furnaces orbasic oxygen furnaces (BF/BOFs). However, the latterstill account for approximately 73 percent of global
production and are dominant in Europe and China. 4
Another route to lower-CO2 steel would be to retrofit
BF/BOFs for carbon capture and storage (CCS) or
carbon capture and utilization (CCU). These would
theoretically enable sequestration of about 85 percent
of CO2 emissions from coke feedstock.5 However, theapproaches are not yet proven at scale. The North
Star for decarbonization would be to scale hydrogenreduced DRI/HBI EAF furnaces powered with renewableenergy. With this combination, producers could makesteel with a carbon intensity of less than 0.2 tCO2 per
metric ton of steel, compared with a global average of
1.8 tCO2 with today’s cleanest technologies. Still, the cost
would be high. The steel would need to command a“green premium” of 20–25 percent over 20 years to fundconstruction of the DRI plant and EAF (not including
capital expenditure for hydrogen production, transport,
and storage) (Exhibit 1).
Exhibit 1

In switching to hydrogen-powered furnaces, asignificant factor would be the availability of low-carbonhydrogen. Despite being among the most abundantelements on Earth, the gas barely exists in its pure form
and must be extracted from compounds in an energyintensive process. Most hydrogen production consists

39
of “grey hydrogen,” made throughsteam methane reforming (SMR). This
creates a gas composed of about onetenth hydrogen and nine-tenths CO2.
By contrast, cleaner “blue hydrogen”
involves combining fossil fuels withsteam to produce hydrogen and CO2,
and then storing the CO2 underground. A
still cleaner approach is to use electrolysis
to separate hydrogen from water,
producing “green hydrogen.” However,this costs around $5 per kilogram toproduce, a prohibitive amount in thecontext of current industry economics.6 In
addition, there are challenges associatedwith availability and quality of scrap,
especially outside the United States, andlimited access to renewable power.7 Still,
as green-hydrogen technologies mature
over the coming years, costs are expected
to fall. Indeed, more than 25 projects areunder development, suggesting there
is a reasonable possibility of scaled
production in the years ahead.8

40

Navigating hurdles

Against this background, what are the key hurdles tothe construction sector moving to green—or greener—
steel? The reality is that, beyond technical challenges,
companies face significant commercial and structuralbarriers. Certainly, the sector’s generally low margins area limiting factor, dampening producer appetite for green
technologies. 9 Established approaches produce steel
for approximately $400 to $500 per metric ton at theslab level. Near-zero emissions steel is more expensive,
albeit with significant variations based on technology,
location, and project.
Another barrier to adoption is that individual developers
do not routinely count emissions from the steel they
consume. This is due to a combination of factors,
including a lack of industry standards, patchy regulation,and the absence of tools to measure embodied carbon(contained in construction materials from extraction touse). 10 Indeed, no certification or grading system has
been widely adopted to date. 11 Furthermore, the steel
industry services a highly fragmented construction
landscape. In North America and Europe, the value
chain is characterized by multiple intermediaries—with
thousands of companies competing for business—andsupply chains consisting mainly of small manufacturers
and merchants (Exhibit 2). Against this backdrop,
effective change at scale is more difficult to achieve.
Exhibit 2

The Steel Advocate ISSUE 1 • 2022

ISSUE 1 • 2022 The Steel Advocate

Commercial sector opportunities

Despite many challenges, economically feasible
progress is possible. To demonstrate thepotential for the construction industry to adopt
greener steel, McKinsey analyzed an illustrative
marginal abatement cost curve for materials
and construction associated with an eight-story
commercial office building. 12 In a businessas-usual scenario, total embodied carbon in
the construction phase would be about 1,900
tCO2, of which approximately 85 percent would
be from materials. 13 Of that total, some 25
percentage points would be associated withsteel (and 37 percentage points with concrete).
14 The analysis shows it would be possible toreduce the building’s embodied carbon by about
1,250 metric tons (or 70 percent). This would bethrough alternative technologies, materials, andsteel-production methods that we expect to be
widely commercially available by 2030.
In modeling the office building’s decarbonization
pathway, we assessed more than 25 individual
levers. 15 These can be grouped in five categories.
The first is to prioritize efficiency in construction
materials and design. This would be a no-regret
move that, by definition, would lower materialand construction costs. The second would be
to migrate to lower-CO2 steel. Moving from BF/
BOF to EAF steel, for example, would have an
immediate abatement impact on embodied
carbon (more than 100 metric tons of embodied
CO2 in our example, or more than 8 percent of
total abatement potential). There are further
gains available through low-CO2 concrete,
flooring, and tiling. And replacing structural steel
with glulam beams and cross-laminated timber(CLT)—in addition to replacing concrete slabs
with CLT or using timber instead of concrete
for load-bearing walls—would further reduce
embodied carbon. 16 Finally, companies could
embrace electrification of on-site equipment,such as generators and machines.
In conclusion, the construction sector presents
a significant abatement challenge,
but also a real opportunity totackle one of the major

41

industrial sources of emissions. To get there,
the sector should start moving toward greener
technologies,
andplanning
forrealistic
economic scenarios that will enable a more
profound transition. With that goal in mind,
an early priority should be standardization of
measurement and labeling systems. These
would enable companies to more easily price andstreamline their green procurement decisions.
In a similar vein, construction companies would
benefit from methodologies to track levels of
embodied carbon, with thresholds embedded
in rating systems such as such as Leadership in
Energy and Environmental Design (LEED) and
Building Research Establishment Environmental
Assessment Method (BREEAM). This would
enable decision makers to more confidently set
targets and plot decarbonization pathways.
On the demand side of the equation, nearzero emissions steel cannot yet compete withestablished technologies on the basis of pricealone. To unlock demand, developers, operators,
owners, and large occupiers could consider
forming buyer’s clubs to aggregate purchasecommitments. In addition, they could commit
to offtake agreements with near-zero emissions
mills and seek out dedicated green funding
for specific projects, as some construction
companies are already doing. Financers could
facilitate that process by setting up systems
to track and report on funding of embodied
carbon, and by leveraging environmental
product declarations and life cycle assessments
to support quantification. They could, in parallel,orient toward more green bonds, green loans,or green revolving-credit facilities. Finally, as inmost green transition scenarios, there is powerin knowledge. Almost everybody who works
in hard-to-abate industries is on a journey oflearning about sustainability issues, and industry
participants should not be reluctant to callfor more education, research, and collegiality.
Through joint efforts, stakeholders can promotesharing of perspectives, case studies, and data.
Through this range of efforts, greener
technologies could enable a significant reduction
in steel industry emissions, and therefore a moresustainable construction industry. In the context
of a fast-warming planet, these would represent
important achievements. The imperative fordecision makers, therefore, should be to seize
the moment, adopt a radical mindset, and takeconcrete steps to transition to a greener
future.

42

The Steel Advocate ISSUE 1 • 2022

ISSUE 1 • 2022 The Steel Advocate

43

MSI With You
MITI AND AGENCY MONTHLYASSEMBLY 2022
On the 24th of January 2022, MSI took
part in the monthly assembly for MITI
and Agencies held at Dewan Perdana
MITI at MITI tower. This was the firstmeeting for the year and was attended
by Senior Minister of International Tradeand Industry Dato’ Seri Mohamed Azmin
Bin Ali, Deputy Minister of International
Trade and Industry Datuk Lim Ban
Hong, Secretary General of MITI Datuk
Lokman Hakim Ali, Deputy Secretary
General of MITI, Dato’ Sri Norazman bin
Ayob, Mr. Hairil Yahri Yaacob, and Datuk
Bahria Mohd Tamil. Also in attendancewere all the heads of agencies. Besides
sharing the achievements by theministry and its agencies, the tragedyof the recent floods along with theplight of victims, many of whom include
MITI members. Many from within theministry and agency was affected andcollectively, those affected were given
assistance by the ministry. The Minister
also recognized many of the industry
which had helped in the ministries
effort in helping with the flood relief.
Some of which include, the Lion ParksonFoundation, Malaysian Iron and Steel
Industry Federation, Malaysian Steel
Association, the Federation of Malaysian
Manufacturers, Ye Chiu Non-Ferrous
Metal (M) Sdn Bhd, and many others
who have contributed either in cash orin kind.

DISCUSSION SESSION BETWEEN MATRADEAND MALAYSIA STEEL INSTITUTE
On the 11th of February 2022, MSI met up with
officers from MATRADE to discuss potential
offerings by MATRADE that could be extended to
MSI members and potential partnership between
the two agencies. Based on meeting with officials
from MATRADE, iron and steel companies canreach out to MATRADE for business matchingactivities via MSI.

44

The Steel Advocate ISSUE 1 • 2022

MSI With You
CHINESE NEW YEAR DINNER BY
FMHMBAOn the 11th of February 2022, MSI
represented by CEO Mr. Lim Keng
Yow was invited for a Chinese New
Year dinner by The Federation of
Malaysia
Hardware,Machinery&
Building
Materials
Dealers’
Association (FMHMBA) at the Grand
Imperial Hotel in Kuala Lumpur.

NEW
INVESTMENT
WALKABOUT

POLICYOn 9th of March 2022, the Ministryof International Trade and Industry(MITI) organized the New Investment
Policy Walkabout session at Dewan
Perdana MITI inaugurated by the
Senior Minister, Dato’ Seri Azmin bin
Ali. Also present were Datuk Lim Ban
Hong, the Deputy Minister as wellas other stakeholders. The Deputy
Secretary General of Investment,
MITI, Datuk Bahria bin Tamil thenled both the Senior Minister andthe Deputy Minister around thehall which showcased the New
Investment Policy.

SCHAEFFER VISIT TO MSI
On 3rd of March 2022, Schaeffer represented
by Mr. Mohammed Benjamin visited the officeof MSI for the presentation of the membershipplaque for joining MSI as an associate member.
Mr. Benjamin also had a discussion with Mr.
Lim Keng Yow on participating in the PENJANA
and RMK-12 training program where there
is a possibility to train current or potential
employees on the process of steelmaking.

JEMPUTAN IFTAR PERDANA BERSAMAAGENSI DAN INDUSTRIOn 20 April 2022, the Ministry of International
Trade and Industry (MITI) organized the MITI
Premier Iftar Ceremony with Agencies andIndustry for the year 2022. The ceremony was
officiated by YB Dato’ Seri Mohamed Azmin Ali,
Senior Minister, Minister of International Tradeand Industry.

ISSUE 1 • 2022 The Steel Advocate

45

MSI With You
VISIT TO ESTABLISHED METALINDUSTRIES (EMI)Mr Lim Keng Yow, CEO of MSI has
visited Established Metal Industries(EMI) on 11 May 2022 to view thedevelopment of new IBS system for
SME application.

MAJLIS RAMAH MESRA AIDILFITRI “EKONOMI LESTARI, TEGUH DAN MAKMUR”
On 31 May 2022, YB Dato’ Seri Mohamed Azmin Ali, Senior Minister of International Trade and Industry
invited to the Aidilfitri Friendly Ceremony “Ekonomi Lestari, Teguh, dan Makmur”. The open housecelebration this time was celebrated with the MITI family, MITI Agencies, industry players, chambersof commerce and media partners who have been very supportive of efforts to revitalize the economy.

MSI 9th ANNUAL GENERALMEETING (AGM)
On the 23rd June 2022, Malaysia SteelInstitute has organised the 9th Annual
General Meeting (AGM) via hybrid(physical and online) at Cempaka
Meeting Room, MITI Tower. The
AGM was chaired by YBhg. Dato’ Sri
Norazman Ayob, Chairman of MSI. MSI
presented the deliverable and activities
for 2021 and 2022.

46

The Steel Advocate ISSUE 1 • 2022

MSI Bridging Gaps
WEBINAR ON PRICE CONTROL AND ANTIPROFITEERING ACT 2011 MECHANISMS FOR THE
IRON AND STEEL INDUSTRY
On the 26th of January 2022, MSI together with the Ministryof Domestic Trade and Consumer Affairs (MDTCA) hosted awebinar upon request to members of MISIF to explain themechanisms for the price control and anti-profiteering act
2011. Items covered in the webinar included price control
mechanisms which applies to all product with no exception
to iron and steel. MDTCA officers also noted where if there
is an issue on price escalation, the manufacturer andwholesaler will be engaged in the investigation.

METAL PLATING FOR CORROSION AND WEAR
E-TRAINING COURSE
On 22-25 March 2022, MSI attended the MISIF-USM
e-Training Course on “Metal Plating for Corrosion andWear”. The training was conducted by two experienced
lectures. This training covered basic knowledge on
metallurgy (structure and properties, processing
techniques), and fundamental of metal plating which
exposed to new knowledge and practices. MSI would
like to thank MISIF for extending the complimentaryseat to MSI to join the e-training course.

CIRCUMVENTION UNDER HS Code 7225.99.9000(Alloy)On 31 March 2022, MSI coordinated a discussion
on “Circumvention under 7225.99.9000” with theobjective to minimize circumvention. The meeting waschaired by CEO, MSI and attended by MITI (BPI, Export& Import Control Section and TPS), SIRIM QAS, RMCD,MISIF (CSC, Mycron and POSCO) and NS BlueScope.
The challenges, new ruling and way forward werediscussed Circumvention of alloy.al industry and lossof government revenue.

WORKSHOP ON RESEARCHMETHODOLOGY FOR OCCUPATIONALFRAMEWORK DEVELOPMENT
MSI attended Workshop on Research
Methodology
forOccupational
Framework Development from 1-4
March 2022. The workshop, organised
by Jabatan Pembangunan Kemahiran,
Kementerian Sumber Manusia provided
exposure to the participants on
methodology to develop Occupational
Framework for related industry and to
improve service delivery by the National
Occupational Skills Standard (NOSS).

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ISSUE 1 • 2022 The Steel Advocate

MSI Bridging GapsTECHNICAL COMMITTEE 2/2022 MEETINGFORESIGHT STUDY ON IRON AND STEEL

INDO-PASIFIK ECONOMIC
FRAMEWORK-IPEF

On 21st April 2022, MSI attended Technical Committee
2/2022 meeting Foresight Study on Iron and Steel. The
meeting was led by MIGHT aimed to seek technicalcommittee approval for the draft report. The meeting
also discussed industry related issues and seek
consensus from the industry stakeholders prior topolicy formulation.

On 21st March 2022, MSI attended
meeting on Cadangan Penyertaan
Malaysia dalam Rangka Kerja Ekonomi
Indo-Pasifik (Indo-Pasifik Economic
Framework-IPEF) lead by the UnitedStates. This framework is part of theUnited States’ vision to make the Indo
-Pacific an open, resilient, prosperous
and secure region. It outlines 4 key
thrusts for ensuring regional prosperity
and enhancing cooperation including
Fair and Resilient Trade, Supply Chain
Resilient, Infrastructure, Clean Energy& Decarbonization and Tax & AntiCorruption.

WORKSHOP ON STRATEGIES, ACTION PLANS & RECOMMENDATIONS ORGANISED BY
MALAYSIA INDUSTRY-GOVERNMENT GROUP FOR HIGH TECHNOLOGY (MIGHT)
On 4 April 2022, MSI attended third and final workshop on Strategies, Action Plans & Recommendationsorganised by Malaysia Industry-Government Group for High Technology (MIGHT). The objective of theworkshop is to refine the proposed framework and develop the long-term strategic direction of theIron & Steel industry. Currently, MIGHT in collaboration with the Ministry of International Trade andIndustry (MITI) is conducting a Foresight study on the Iron and Steel Industry to understand Malaysia’siron and steel industry and develop long-term measures for the industry towards 2030.

DISCUSSION WITH WATERMARKS
The discussion between MSI and Watermarks
was held on 11 May 2022 via Microsoft Team.
Watermarks is an Accredited Certification
Body for CoA Iron & Steel products (longproducts - construction sector) under theConstruction Industry Development Board.
With regards the appointment as Certification
Body for CoA of Iron & Steel Products (nonconstruction sector). MSI advised that byfollowing the protocol, it has to be tabled to
WG-MSC for discussion and consideration.

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The Steel Advocate ISSUE 1 • 2022

MSI Bridging Gaps
VISIT FROM WORLDSTEELASSOCIATIONOn the 23rd of May 2022, Malaysia
Steel Institute (MSI) organised ameeting between The Worldsteel
Association (Worldsteel), Malaysian
Iron & Steel Industry Federation(MISIF) and The Malaysia Automotive,
Robotics and IOT Institute (MARII).
The meeting was attended by Dr
Nae Hee Han and Mr Prashant
Priyadarshi from Worldsteel, Ms
Ng Mor Kiang from MISIF and Mr
Nasruldin and Ms Farhana fromMARII. Topics covered during thediscussion included the economic
overview and identification of growth
drivers for the domestic market anddevelopment of steel market in theregion. It was highlighted that two
local flat producers – Lion Steel Sdn
Bhd and Eastern Steel Sdn Bhd
will start production in the near
future. The meeting acknowledged
production of automotive steel
grade for domestic market is notviable for the time being due to small
automotive industry in Malaysia.
Besides trade, the discussion also
addressed several issues within
the steel industry for eg. postpandemic recovery and outlook of
the steel consuming industry in themedium and long term. It was alsoemphasized that localisation of raw
materials will render tremendous
benefitforConstruction,
Automotive,
Shipbuilding
andElectric & Electronics (E&E) industry
to move forward.
Steel related
policy also came under discussion
which include decarbonization andsustainability issues of the steel
industry and recycling for scrap.
The meeting is to gather input for
ASEAN 2035 Study by Worldsteel.

HALATUJU MEETING
Malaysia Steel Institute
(MSI)
has
been
established since 2013 as
an agency under Ministryof International Trade and Industry (MITI). After 9 years of
establishment, Government and Founding Members i.e.,
MSA and MISIF to discuss the Future Direction and Functionof Malaysia Steel Institute toward self-sustainability. Since
November 2021, several meetings have been carried out,
and the final meeting was held on 26 May 2022.

LAUNCHING OF MISIF 14TH REPORT ON STATUS ANDOUTLOOK OF THE MALAYSIAN IRON AND STEEL
INDUSTRY
The Malaysian Iron and Steel Industry Federation (“MISIF”)
has launched the 14th edition of the flagship report on 22
June 2022. The launching of the report entitled “The 14th
Report on Status and Outlook of the Malaysian Iron and Steel
Industry 2022/2023” (“14th MISIF Report”) was presided by
the event’s Guest-of-Honour YBhg. Datuk Lokman Hakim Ali,
Secretary General of the Ministry of International Trade andIndustry (“MITI”), Dato’ Lim Hong Thye, President of MISIF,Tan Sri Dato’ Soh Thian Lai, MISIF Immediate Past President
and En. Roshan Abdullah, MISIF Deputy President I and 14th
Report Editorial Committee Chairman.

HASILWAN ON ESG FOR IRON AND STEEL
On 30 June 2022, Hasilwan (M) Sdn Bhd visited to MSI todiscuss on the possible collaboration in renewable energy,
energy efficiency and solar power system to be integrated in
the iron & steel industries to reduce the cost of energy andcarbon emission. It is also part of the initiative to achieve the
GHG emissions intensity (by GDP) by 2030.

ISSUE 1 • 2022 The Steel Advocate

49

MSI TrUPENJANA PROGRAMME BATCH 8 UPSKILLING AND RESKILLING
On the 8th of January 2022, MSI organized the 8th session of trainings under the PENJANA Upskilling andReskilling programme for participants in the iron and steel industry. In the 8th batch, the programme
was done in a hybrid manner having both online and in-person attendance which was held at Bantingthat includes new workers for Lion Steel Sdn. Bhd. & Alliance Steel (M) Sdn. Bhd.

PENJANA PROGRAMME BATCH 9 UPSKILLING AND RESKILLING
On the 19th of January 2022, MSI organized the 9th session for the PENJANA Upskilling and Reskilling
programme for participants in the iron and steel industry. The session was held at the premises of
Amsteel Mills Sdn Bhd in Bukit Raja, Klang. This session was held in hybrid manner with a total of
50 participants which includes in-person and online participants representing trainees from Amsteel
Mills Sdn. Bhd., Ann Joo Berhad, Wei Da Industries Sdn. Bhd. & Alliance Steel (M) Sdn. Bhd.

50

The Steel Advocate ISSUE 1 • 2022

MSI TrU
RCEP AND CPTPP TRAINING FOR CSC STEELMyProjek SYSTEM BILATERAL SESSION

On the 24th of February 2022, MSI organized a training
session on RCEP and CPTPP trade agreements for
CSC Steel Sdn Bhd. MSI conducted the training foraround 24 employees of CSC Steel on the different
aspects of the free trade agreements and how it
might affect the company going forwards.

On 7 April 2022, the Implementation
Coordination Unit (ICU), Prime Minister’s
Office held a bilateral session to discuss indetail the use of MyProjek System, Project
Monitoring System II and other issues
related to project management in the
Ministry. Outcome from this session, some
improvements will be made to the MyProjek
system to streamline the data entry process
in the system.

BRIEFING TO PARTICIPANT RMK12BATCH 3
MSI conducted a briefing session for thethird batch participants for RMK12 Iron
and Steel Training Programme 2022
(Extensive Training) on 6 April 2022. The
third batch for 15 days Extensive Training
was participated by 47 participants.

BRIEFING TO PARTICIPANT RMK12BATCH 4On 13 April 2022, MSI conducted abriefing session for the fourth batch
participants for RMK12 Iron and Steel
Training Programme 2022 (Extensive
Training). The fourth batch for Extensive
Training was participated by 60
participants. As of date, MSI has trained
172 participants for Extensive Training.
MSI is targeted to train 385 participants
by end of 2022.

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ISSUE 1 • 2022 The Steel Advocate

MSI TrU
RMK 12 BATCH 5 TRAINING
On 17 May 2022, MSI conducted a briefing
session for the Batch 5 participants for
RMK12 Iron and Steel Training Programme
2022 (Extensive Training). The total of 12
participants taking part into the briefing.
From the target of 385 participants by
end 2022, MSI has trained 184 participants
under the Extensive Training programmefor 5 batch.

BRIEFING BATCH 6
MSI started RMK-12 Iron and Steel Industry Training
Programme – Extensive Batch 6 on 7 June 2022. A
total of 16 participants from 3 steel companies haveparticipated in this programme. The programmes
targets to train local workers to upgrade their skills towork in iron and steel industry, reduce the dependence
on expatriate/foreign workers and eventually reduce
outflow of Malaysian currencies due to foreign
employment.

BRIEFING BATCH 7
MSI Commenced batch 7 of RMK12 Iron and Steel Industry Training
Programme – Extensive Batch
7 on 20 June 2022. A total of 14
participants have participated inthis programme , the programme
was conduct via virtual platform
with 15 classes to be delivered byexperience trainer.

SESI PEMBENTANGAN PROGRAM LATIHAN OLEH SYARIKAT GREEN PACKET ACADEMYSDN BHD
Green Packet Academy Sdn Bhd presented their capabilities and experience in conducting trained andplaced programme with MITI and Agencies and they are interested to collaborate with MITI Agencies
to conduct training programme for the industry.

52

The Steel Advocate ISSUE 1 • 2022

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List of Events& Activities

2022

1.

Stainless Steel World Asia Expo & Conference 2022

2.

International Construction Week 2022

3.

2022 Steel Mega Event and Expo

4.

15th International Conference on ConcreteEngineering and Technology

Date: 26 - 27 October 2022
Venue: Singapore Expo, Singapore
Contact: j.mcintyre@kci-world.com (Ms. Joanne Mclntyre)

Dates: 8 – 10 November 2022
Venue: Malaysia International Trade and Exhibition Centre,
Kuala Lumpur, Malaysia
Contact: lycoris.goh@informa.com (Lycoris Goh)

Dates: 14-18 November 2022
Venue: Sunway Pyramid Convention Centre, Malaysia
Contact: ylfong@seaisi.org (Ms. Josephine Fong)

Date: 5 - 8 December 2022
Venue: Virtual event
Contact: https://concet2022.com/

5.

International Conference on High Strength Alloys,
Iron and Steel (ICHSAIS)
Date: 6 - 7 December 2022
Venue: Kuala Lumpur, Malaysia
Contact: https://waset.org