FEBRUARY 2021

THE STEELNOTICEBOARD

BILLETREBARSTEEL WIRE ROD

RM2288

RM2739

RM2850SCRAPIRON ORE

RM1697

RM666

TRADE PERFORMANCE
Trade Performance of Malaysia Iron and Steel Industry, January-February 2021
Malaysia’s Iron and Steel trade value in February 2021 was recorded at RM 4.0 billion, down by 9.7 percent comparedto RM 4.4 billion in February 2020. Trade balance was recorded a trade surplus of RM 95.3 million in February 2020and currently having a trade deficit of RM 397.8 million in February 2021.
Malaysia’s export in February 2021 slipped by 20.4 percent to RM 1.9 billion from RM 2.3 billion in February 2020.
Three main export destinations in February 2021 were seen to China, Thailand and Indonesia, represent about 34
percent, 13 percent and 6 percent of the total export value in the month respectively.
Malaysia’s import in February 2021 surged slightly by 1.4 percent to RM2.2 billion from RM2.1 billion in February
2020. Top three Malaysia’s import countries in February 2021 were China, Japan and Korea, represent about 20
percent, 18 percent and 14 percent of the total import value respectively.
From January to February 2021, the trade value of the Iron and Steel products stood at RM 8.1 billion in 2021
compared to RM 8.8 billion in the same period of 2020, reduction of 7.4 percent. Trade balance widened by 23.2
percent from trade deficit of RM 548.5 million in January to February 2020 to trade deficit of RM 675.7 million during
the same period of 2021.

Malaysia Trade Performance of Iron & Steel Industry
Month Trade ValueFeb 2021: RM4.0billion
9.7 % M-o-M change
Feb 2020: RM4.4billion

Feb 2021: (RM397.8million)
Trade Deficit

Month Balance of Trade517.4 % M-o-M change

Feb 2020: RM95.3million
Trade Surplus
Month Export
Feb 2021: RM1.9billion

20.4 % M-o-M change

Feb 2020: RM2.3billion

Month Import
Feb 2021: RM2.2billion

1.4 % M-o-M change

Feb 2020: RM2.1billion

YTD Trade Value
Jan-Feb 2021: RM8.1billion

7.4 % Y-o-Y change

Jan-Feb 2020: RM8.8billion

Jan-Feb 2021:(RM675.7million)
Trade Deficit

YTD Balance of Trade23.2 % Y-o-Y change

Jan-Feb 2020:(RM548.5million)
Trade Deficit
Data Source: MSI/MATRADE/DOSM[AUTHOR NAME]

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MSI WITH YOUMEETING WITH MISIF AND MSA TO
TOUCH BASE ON IRON AND STEEL ISSUESThis meeting was organised by MITI with theobjective to touch base on the Iron and Steel issues
with industry players. Among the main issues
discussed were Progress on Localisation Roadmap
for Automotive & Shipbuilding Industries anddefinition for "Like Product" in Manufacturing
License Issuance with reference to the newly
announced Iron and Steel Policy.

MSI-SIRIMQAS
COLLABORATIONPRELIMINARY MEETING
MSI-SIRIM QAS collaboration preliminary meeting
was chaired by Ketua Setiausaha (KSU) of MITI and
attended by MSI, SIRIM QAS and BPI at MARII,
Cyberjaya. The objective of this meeting is to brief
KSU on the scope and way forward of the MSISIRIM QAS collaboration.

COURTESY VISIT WITH KSU AND
BAHAGIAN PEMBANGUNAN INDUSTRI(BPI) TEAM TO MEET TAN SRI WILLIAM ON
ANTARA STEEL HBI PLANT ISSUES
Datuk Lokman Hakim Ali, Ketua Setiausaha,
Ministry of International Trade and Industry (MITI),MITI Officer, Malaysian Investment Development
Authority (MIDA) and Malaysia Steel Institute (MSI)
visited Lion Group to discuss on the Oriental Shieldproject development at Banting. This courtesy visit
also discussed on the Banting Industrial Park
development and other steel related matters.

[AUTHOR NAME]

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COURTESY VISIT TO ESTABLISHED METALINDUSTRIES SDN BHD
On 25 February 2021, the Chief Executive Officer of
Malaysia Steel Institute visited Established Metal
Industries Sdn Bhd (EMI) located at Serendah,
Rawang. The purpose of this courtesy visit was todiscuss on EMI’s narrow strip project development at
Rawang Plant.

MESYUARAT PENYELARASAN AKTIVITI BADANPENERAJU INDUSTRI BIL.1/2021
This meeting was held on 5 February 2021 via Google Meet.
The objective of this meeting is to update on the new Jabatan
Pembangunan Kemahiran (JPK) initiatives, such as:Sistem
Latihan Dual Nasional (SLDN) (plus), tendering of national
occupational skills standard project and occupationalframework (of) and promotion of Sijil Kemahiran Malaysia(SKM) through social media.

SESI HANDS ON SISTEM MY PROJECT
Hands on session on MyProjek with the Implementation
Coordination Unit (ICU), Jabatan Perdana Menteri. Thissession was to provide exposure and understanding toagency representative and MITI Division on the use of
MyProjek System in monitoring the implementation ofdevelopment Projects that have been approved under the
Malaysia Twelfth Plan (RMK12).

MESYUARATBERSAMAAGENSI-AGENSIBERHUBUNG PELAN KOMUNIKASI PEKERJAAN UNITLAKSANA, MINISTRY OF FINANCE (MOF)
This meeting was held on 15 February 2021 with the objective
to discuss and formulate effective communication plan on thecurrent employment by industry relate on government
initiatives through ministries and agencies.

[AUTHOR NAME]

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MSI BRIDGING GAPS
WEBINAR: ASIA RISING -HOW WILL ASIA’S EXPANDING INFLUENCE IMPACT US FOREIGNPOLICY?
The webinar was hosted by South China Morning Post (SCMP), Hong Kong and sponsored by the Asia Schoolof Business. The objective of this webinar is to engage in discussions on the outlook on possible shifts in US
foreign policy towards the China post- Trump era. In the webinar, three expert panellists provided theirviews moderated by Ms Zuraidah Ibrahim, Deputy Executive Editor South China Morning Post. The main
points discussed (including pre-webinar questions) are as follows:(i) The Biden led US has already indicated rebuilding relations particularly with Asia and Indo-Pacificregions, besides other region such as Middle East post-Trump era:•

The announcements showing a more orderly traditional policy communication but
we need to wait and see this in practice/implementation.

(ii) On China’s more dominant exertion of power both economically (e.g. Australia) and militarily in
the South China Sea and Himalayan area, what would be the best approach that the US could take:•

The Panellist viewed that the approach could be a combination of Trump’s hardheaded approach could probably lead to open channels to discuss way forward on
difficult areas; and at the same time view that that a pure confrontational approachon China might work in narrowing their differences; and•Another approach could be for both sides to start conversations on areas ofcommon interest such as assisting to contain Corona Virus Pandemic andaddressing climate change as a stepping stone to discussing more difficult areas.

(iv) On economic influence, especially the Chinese Belt & Road Initiative (BRI), it was felt that the BRI
is not sustainable in the long-term financially and at the same time noted that the BRI has brought
about both good and poor outcomes. Further, China has learnt from the poor deals and is moving
towards a market based viable approach. The US private sector on the other hand is not into doing
construction project-based initiatives, but could take the form of providing syndicated finance ofsuch projects to counter balance the BRI.
(v) On Australia – China trade conflict the panellists viewed that Australia had taken an overcomplacency approach to extreme reactions on trade with China. Viewed that both sides will cometo senses to reach middle-grounds and trade will be dictated by the businesses and they will go for[AUTHOR NAME]

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win-win situation rather than confrontational – as China is already doing on imports of copper from
Australia.
(vi) On the US Dollar losing its position as the main traded currency, one of the panellists did notthink this will happen due to currently no other attractive alternative is available, unless the UScontinues printing US dollars and world decide otherwise; and secondly, even though with the corona
virus pandemic presently affecting global trade, the volume of trade is still high and the US dollar isstill highly used.

INDUSTRY ENGAGEMENT SERIES WITH
INDUSTRY LEAD BODY (ILB)
This Industry Engagement Series with Industry Lead
Body (ILB) is hosted by the Institute for YouthResearch Malaysia (IYRES). Some of areas discussed
were:- How TVET can fulfill the industry;- Recommendation TVET deliveries
and future job that match; and- IR4.0 - elements to incorporate to upskilling andreskilling.

[AUTHOR NAME]

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MSI TRUROLLING PLAN 2 YEARS 2022 PROJECT APPLICATION PREPARATION WORKSHOP
DAY 1 (10 FEBRUARY 2021)
The first day of this workshop was hosted by MITI
and Economic Planning Unit (EPU). The objective of
this workshop is to provide an understanding andexposure to officials from MITI and agencies on therequirements to prepare a project proposal under
RMK-12. Methods to perform valuation using Logical
Framework Matrix and Creativity Index to evaluate
the benefits have been taught in the Bengkel. MSI
plans to submit several Development proposals towhich will be Iron and Steel industry.
DAY 2 (11 FEBRUARY 2021)
The second day of Rolling Plan 2 Year 2022 Project
Application Preparation Workshop for the Public
Sector Comparator slot is with the Economic
Planning Unit (Value Management Section) andPrime Minister's Department (EPU, JPM). The
objective of this workshop is to provide anunderstanding and exposure to officials from MITI
and agencies on the Public Sector Comparator (PSC).

THE TAKLIMAT PERMOHONAN PROJEK/PROGRAM ROLLING PLAN 2
The Taklimat Permohonan Projek/Program Rolling
Plan 2 was organized by MITI’s Finance Division washeld on 25 February 2021. The objective of thebriefing is to provide understanding and exposure on
the requirements to prepare the project application
under Rolling Plan 2 (2022).

[AUTHOR NAME]

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STEEL FACTSCRUDE STEEL PRODUCTION

Source: https://www.worldsteel.org/media-centre/press-releases/2020/November-2020-crude-steel-production.html[AUTHOR NAME]

8EVENTS HIGHLIGHT[AUTHOR NAME]

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10STEEL NEWS1. STEEL PRICE HIKE LEAVES CONTRACTORS AT A LOSS
Date: 3 February 2021
Source: https://www.thestar.com.my/metro/metro-news/2021/02/03/steel-price-hike-leavescontractors-at-a-loss

THE 48% increase in steel prices has put additionalpressure on many contractors who are still reelingfrom revenue losses due to the Covid-19 pandemic
and movement control order.
Johor Master Builders Association president Tee See
Kim said the price increase had a big impact on theconstruction sector and caused much hardship tocontractors.
He said steel price had increased from RM2,100 per
tonne to RM3,100 in the third quarter of last year.
“We are on the losing end as the value of thecontract tendered is already fixed and they have no
choice but to complete the project,’’ Tee said whencontacted.
He said the pricing for tenders was very competitive as there were many bidders but fewer jobs due
to Covid-19 and various movement restrictions.
“Bidding for a tender is normally done taking into account the current prices of building materials
including steel, which is the main component in the construction industry,’’ he said.
Tee said it was a risk that contractors had to take as no one could forecast whether the prices ofbuilding materials would increase or otherwise during the duration of the project.
He said the hike in the price of steel, if not controlled by the government, would not only impact
contractors but also the developers.
Tee said in the case of residential properties, the increases would ultimately be passed on to the publicthrough higher property prices.
“Most of our 250 members are depending on projects from the private sector, particularly fromdevelopers, although some are also doing public projects,’’ he said.
Tee said, unlike private projects, public projects would include price variations where the government
would pay the difference if the cost of the project escalated.
He said the escalation could be due to an increase in the base prices of building materials after thetender was awarded.
“The government will deduct the cost if the price of materials come down; it is a win-win situation forboth parties,’’ he added.
He hoped the private sector could come out with similar arrangement as it would be good for theconstruction industry.

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2. Iron ore price retreats on higher steel inventories in China
Date: 19 Feb 2021
Source: https://www.mining.com/iron-ore-price-retreats-on-higher-steel-inventories-in-china/
Iron ore prices fell on Friday after hitting
their highest level since September 2011,as a survey of post-Lunar New Yearinventories of steel products in China
showed a significant increase, dampening
hopes for mills to ramp up output following
the week-long holiday.
According to Fastmarkets MB, benchmark
62% Fe fines imported into Northern China(CFR Qingdao) were changing hands for$173.55 a tonne, down 0.85% fromThursday’s trade.
Consumption among steel end-users stagnated during the February 11-17 holiday while mills
continued to produce during the break, Mysteel reported.
“Previously, the market had expectations for better post-holiday demand,” said analysts at Sinosteel
Futures in a note, but added demand does not usually pick up until after China’s Lantern Festival,
which falls on February 26.
Concerns about tight supply and brightening prospects for demand outside top steel producer China
should continue supporting iron ore prices, analysts said.
On Tuesday, BHP Group said it expected a continuation of strong Chinese demand in 2021, and arecovery in global crude steel production.
Shares of BHP and Rio Tinto have risen by 7.5% and 6.8% over the week, respectively, and Vale is up
3.4% since last Friday.
“Not only in China, but the ex-China activity is also picking up to pre-covid levels,” Fortescue Metals
Group Chief Executive Elizabeth Gaines said during a media conference call. The company shares
have risen 0.58% over the week.
“Our view is that the market will remain robust for some time,” Gaines said.
(With files from Reuters)[AUTHOR NAME]

123. Iron ore price bounces back on strong demand and shipment doubts
Date: 22 February 2021
Source: https://www.mining.com/iron-ore-price-bounces-back-on-strong-demand-and-shipmentdoubts/
Iron ore prices bounced back on Monday after a slightdecline on Friday, as demand remains strong in
China’s steel sector and doubts have been raised
about Brazilian shipments.
According to Fastmarkets MB, benchmark 62% Fe finesimported into Northern China (CFR Qingdao) werechanging hands for $175.96 a tonne, up nearly 1.38%
from Friday’s trade.
Capacity utilization rates at 247 furnaces across Chinarose to 92.19% on February 19, from 90.94% before theLunar New Year holiday.
Lower shipments from Brazil are supportive of iron ore prices, according to Brazilian XP
Investimentos. In the week ended on February 21, Brazilian shipments decreased 8% WoW (5.5
tonne), following heavy rain in the north of the country.
The daily index for iron ore 65% Fe Brazil rose 1%, to $200 a tonne on Monday, an all-time high.
“High rain volumes at major ports will continue to represent a challenge for Brazilian players during
1Q. So far, Brazil is running below guidance,” the company said.
Ponta da Madeira – one of Vale’s main assets and one of the most important iron ore and manganeseloading terminals in the world – registered a decrease of 38% in shipments WoW, to 2,404 tonnes.
In January, a fire hit pier 4S shiploader at Ponta da Madeira and repair could take months and impact
Vale’s iron ore shipment capacity, a source familiar with the matter told MINING.COM.
Over the last week, the Brazilian National Meteorological Institute (INMET) issued warnings ofintense rains in Maranhão.
Vale did not respond to requests for comment on the impact of the rain on shipments.
“For Australia, the decrease of 15% (15,486 tonnes) in shipments in the week was a result of lower
performance in Port Hedland (8,315 tonnes). However, it is still above the guidance,” XP said in anote.
“For this week we believe shipments might keep the pace above the 14 tonne level, with no news
about [a] potential storm/cyclone.”
SUPPLY AND DEMAND OUTLOOKGlobal iron ore production growth will accelerate in the coming years, bringing an end to thestagnation that has persisted since iron ore prices hit a decade-low average of $55/tonne in 2015,
market analyst Fitch Solutions said in its most recent report.
“We forecast global mine output growth to average 2.4% over 2021-2025 compared to -2.0% overthe previous five years. This would lift annual production by 378m tonnes in 2025 compared to 2020
levels, roughly the equivalent of India and Russia’s combined 2020 output.”
The market researcher forecasts global steel production to grow by 4.9% in 2021 after contracting
by 0.1% in 2020. “This will be driven by 7.5% growth in steel production in China and 6.2% growth inIndia, the two largest steel producers. Looking further ahead, we expect global iron ore consumption
to steadily slow over subsequent years,” Fitch said.

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ABOUT MSI
Malaysia Steel Institute (MSI) is an industry driven enterprise supported and funded by the Ministry of International
Trade & Industry (MITI) on shared responsibility basis with the industry. The main objectives of MSI are to promoteand develop the competitiveness, resilience and sustainability of the Malaysian iron and steel industry; to provide
advisory services and to carry out commission or promote the study of scientific, technology and economic aspects ofiron and steel industry development in Malaysia; and to promote iron and steel product standardisation and utilisation
within Malaysia. For more information, please visit www.malaysiasteelinstitute.com and follow us on Facebook,
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MALAYSIA STEEL INSTITUTE
Level 26, Menara MITI
No. 7, Jalan Sultan Haji Ahmad Shah
50480 Kuala Lumpur[AUTHOR NAME]

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