APRILTHE STEEL NOTICEBOARD
2023

30 January 2023

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Average DomesticPrice (per MT)

Average Monthly Steel Products Selling Price(per MT)
01 Billet

02 Rebar

03 Steel Wire Rod

RM2,637 - RM2,737

RM2,958 - RM3,059

RM2,990 - RM3,240

Average Monthly Raw Material Price(per MT)
04 Scrap Iron

05 Iron Ore

RM1,687 - RM1,824

RM501 - RM564

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Trade Performance
Malaysia's Trade
Performance
January-April 2023
Malaysia’s Iron and Steel total trade value in April 2023
contracted by 17.2 percent to RM5.3 billion compared to RM6.4
billion in April 2022 for the same period. Trade balance has
narrowed from trade surplus of RM580.4 million from trade
deficit of RM147.4 million for the same comparison period.
Malaysia’s iron & steel export in April 2023 declined by 25.7
percent to RM2.6 billion from RM3.5 billion in April 2022. Threemain export destinations in April 2023 were Hong Kong,
Thailand and Indonesia accounting for 20.1, 9.8 and 7.4 percentof the total export value respectively.
Malaysia’s iron & steel import in April 2023 dropped by 6.9
percent to RM2.7 billion from RM2.9 billion in April 2022. Imports
from China, Indonesia and Japan accounted for the top three(3) spots representing 25.5, 10.8 and 10.4 percent of the total
import value respectively.
From January to April 2023, the total trade value of the Iron andSteel products stood at RM18.9 billion in 2023 compared toRM23.4 billion in the same period in 2022, a reduction by 19.2
percent. Further, the trade balance widened from a trade
surplus of RM15.8 million in 2022 to a trade surplus of RM326.7
million in 2023 during the same period of comparison.
by Juliana Ahmad
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Malaysia Trade Performanceof Iron & Steel Industry
Month Trade Value
April 2023: RM5.3 billion

17.2 % M-o-M change

April 2022: RM6.4 billion

Month Balance of Trade
April 2023: RM147.4 million
Trade Deficit

125.4 % M-o-M change

April 2022: 01
RM580.4 million
Trade Surplus

Month02 Export
April 2023: RM2.6 billion

25.7 % M-o-M change

April 2022: RM3.5 billion

Month ImportApril 2023: RM2.7 billion

6.9 % M-o-M change

April 2022: RM2.9 billion

YTD Trade Value
Jan - Apr 2023: RM18.9 billion

19.2 % Y-o-Y change

Jan - Apr 2022: RM23.4 billion

YTD Balance of Trade
Jan - Apr 2023: RM326.7 million
Trade Deficit
Jan - Apr 2022: RM15.8 million
Trade Deficit

2167.7 % Y-o-Y change

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Malaysia Steel Institute Visited Hoto Stainless Steel Industries
Sdn. Bhd.
On 10th April, 2023, the Malaysia Steel Institute (Ms. Tracy Lee and Mr. Syafiq Daniel) visitedHoto Stainless Steel Industries Sdn. Bhd. to gain insights and knowledge of stainless steel
pipes and tubes production.
The plant visit was led by Mr. Tony Lee of Hoto who provided a comprehensive explanationof each production stage, from the input material to the final product packing. Theknowledge gained will assist in facilitating MSI in carrying out the relevant market
surveillance activities.
by Syafiq Daniel

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Discussion on Human Resource Development –Eastern Steel Sdn. Bhd.

On 9 April 2023, Malaysia Steel Institute (MSI) visited Eastern Steel Sdn. Bhd. todiscuss on human resource development plan for the company to recruit newworkers to support its expansion to produce Hot-Rolled Coil (HRC). At the sametime, Eastern Steel showed interest for its existing workers to undergo training tobecome certified workers. Eastern Steel has been participating in the Iron andSteel Training Programme conducted by MSI since 2021.
by Lai Leong Chon

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Launching of Iron and Steel Training Programme Extensive Training 2023 Batch 1 and 2by Lai Leong Chon

On 10 April 2023, MSI conducted abriefing to participants of the Iron andSteel Training Programme - Extensive
Training 2023 first batch at Kolej
Universiti TATI (TATIUC) and batch 2 atKolej Ketengah. A total of 78
participants attended the 15-day
training programme and will be
recruited by Eastern Steel at the endof the training.

Iron and Steel Industry Training Programme for
Alliance Steel (M) Sdn. Bhd.
On 10 April 2023 MSI had a meetingwith HR Manager Mr. Huang Zhi Lin todiscuss the HR training plan for
Alliance Steel (M) Sdn. Bhd. The
company will participate in Iron andSteel Industry Training Programme forExtensive Training (for new workers)
and Upskilling of Specific TechnicalKnowledge Training (for existingworkers).

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Steel FactsDID YOU
KNOW?

Fun fact aboutsteel

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GLOBAL
STEEL

NEWS

China’s steel demand is set to slow. That
could dent iron ore prices by nearly 30%
31 MARCH 2023
SOURCE:HTTPS://WWW.CNBC.COM/2023/03/31/CHINAS-STEEL-DEMAND-TOSLOW-COULD-DENT-IRON-ORE-PRICES-BY-NEARLY-30PERCENT.HTMLKey points:
Iron ore prices could decline as much as 28% by the end of 2023 on
the back of a dip in Chinese steel demand and output, experts
forecast.
Morgan Stanley analysts say iron ore prices will fall and citedsubdued production from the world’s leading steel producer China,
as well as the country’s turn toward steel scrap.
Analysts say there’s still upside potential for iron ore prices in thecoming months, as China reopens and eases Covid-19 restriction.
But they do not expect the strength of China’s steel production or
demand to last beyond the second half of this year.

Workers process seamless steel pipes at a production line in Huai ’an, Jiangsu province,China, Oct 20, 2022. CFOTO | Future Publishing | Getty Images

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Iron ore prices could fall as much as 28% by the end of 2023 as China’s
steel demand and output are set to fall, experts forecast.
Morgan Stanley analysts say iron ore prices will fall and cited subdued
production from the world’s leading steel producer China, as well as thecountry’s turn toward steel scrap.
“Our 2H23 base case forecast is $90 per ton,” a report commodities
strategist Marius van Straaten and a team said in a March 20 report.
That’s about 28% lower than the current $126 per ton for benchmark 62%grade iron ore.
Iron ore is primarily used to make steel, an important material inconstruction and engineering projects — and both Asian nations are on
track to consume more.
Commonwealth Bank of Australia also predicted a drop in iron ore prices,
expecting it to be $100 per ton by the fourth quarter this year “as China’ssteel demand eases in the second half of the year,” the bank’s analysts
said last week.
Analysts say there’s still upside potential for iron ore prices in thecoming months, as China reopens and eases Covid-19 restriction. But
they do not expect the strength of China’s steel production or demand tolast beyond the second half of this year.
Demand to slow
China’s pent-up steel demand is likely to taper off in the second half ofthe year, CBA projects, citing China’s conservative economic and policy
agenda for 2023 at its key policy meetings in March.
China, which accounts for 70% of the world’s iron ore imports, projected a
growth target of around 5% for 2023.
Plans to centralize iron ore purchases in China under state-run entity
China Mineral Resources Group (CMRG) could also contribute to lower
prices in the long haul. The CMRG is set up to purchase raw materials for
China’s steel industry.

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Worker at a steel rolling production workshop in Suqian, Jiangsu Province, China, Feb16, 2023. Future Publishing | Future Publishing | Getty Images“If the CMRG can exert China’s market power on iron ore producers, it
should mean lower prices than otherwise over the longer-term,” CBA
pointed out.
Fitch Solutions expects China’s domestic steel demand to slow in the
coming decade compared to the last as the “rebalancing of the economy
away from heavy industry and towards the service sector resumes”
following the downturn of the property market.
“Stronger demand growth in India, the U.S., and Emerging Markets
generally is unlikely to offset the net effect of a China slowdown,” thefinance and insurance company said in March 23 report.
Steel scrap stimulation
Demand for iron ore demand is also being challenged by China’sambitions to increase the consumption of steel scrap, an alternative
material used in steel production.
In early March, China’s Ministry of Industry and Information Technology
announced that the country is increasing its steel scrap usage to 265
million tons this year, marking an increased share of 25% compared tolast year’s 19%.
Morgan Stanley estimates that for every 1% increase in scrap use, China’s
iron ore consumption is cut back by around 17 tonnes per year.

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15

Steel production falls
Global crude steel output incontracting in January as well.

Februaryfell

1%

year-on-year,

afterThe declines were driven by falling output among the world’s major steel
producers.
According to data from the World Steel Association , top producers like
Japan, the U.S. and Russia saw production cuts of 5.3%, 5.3% and 8.6%
respectively.
While the reading is not as steep as the 3.3% drop in January, Fitch
expects limited production growth to persist throughout the year as
major steelmaking firms continue to grapple with high input costs.
China, the world’s leading steel producer, is reportedly looking to curtail
steel production in 2023 for the third year in a row, according toBloomberg.

Date//Time//Year

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 promote and develop thecompetitiveness, resilience and sustainability of the Malaysian Ironand steel industry; to provide advisory services and to carry out
commission or promote the study of scientific, technology andeconomic aspects of iron and steel industry development inMalaysia; and to promote iron and steel product standardization
and utilization within Malaysia. For more information, please visit
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January 2023

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