September 2021

NOTICEBOARD

THE STEELBILLETREBARSTEEL WIRE ROD

RM2,850

RM3,163

RM3,250SCRAPIRON ORE

RM1,882

RM510

TRADE PERFORMANCE
Malaysia’s Trade Performance from January - September 2021
Malaysia’s Iron and Steel trade value in September 2021 was recorded at RM5.4 billion, grew by 43 percent
compared to RM3.8 billion in September 2020. Trade balance improved from trade surplus of RM93.9 million
in September 2020 to trade surplus of RM701.5million in September 2021. Malaysia’s export in September
2021 expanded by 57 percent to RM3.1 billion from RM2.0 billion in September 2020. Three main export
destinations in September 2021 were seen to China, Korea and the United States, represent about 51 percent,10 percent and 9 percent of the total export value in the month respectively.
Malaysia’s import in September 2021 grew by 28 percent to RM2.4 billion from RM1.9 billion in September
2020. Top three Malaysia’s import countries in September 2021 were China, Japan and Vietnam represent
about 22 percent, 17 percent and 11 percent of the total import value in the month respectively. From January
to September 2021, the trade value of the Iron and Steel products stood at RM44.3 billion in 2021 comparedto RM36.0 billion in the same period of 2020, rose by 23 percent. Trade balance has widened from trade deficitof RM689.5 million in January to September 2020 to trade deficit of RM3.5 billion during the same period of2021.

Malaysia Trade Performance of Iron & Steel Industry
Sep 2021: RM5.4billion

Month Trade Value
43.0 % M-o-M change

Sep 2020: RM3.8billion

Sep 2021: RM701.5million
Trade Surplus

Month Balance ofTrade647.1 % M-o-M change

Sep 2020: RM93.9million
Trade Surplus
Month Export
Sep 2021: RM3.1billion
57.0 % M-o-M change

Sep 2020: RM2.0billion

Month ImportSep 2021: RM2.4billion

28.0 % M-o-M change

Sep 2020: RM1.9billion

YTD Trade Value
Jan-Sep 2021: RM44.3billion
23.0 % Y-o-Y change

Jan-Sep 2020: RM36.0billion

Jan-Sep 2021: (RM3.5billion)
Trade Deficit
Jan-Sep 2021: (RM689.5million)
Trade Deficit

YTD Balance of Trade408.0 % Y-o-Y change[AUTHOR NAME]

2

MSI WITH YOUMEETING ON DISBURSEMENT OF KWC-19 FUNDS FOR IMPLEMENTATION OF PENJANARESKILLING AND UPSKILLING PROGRAMMESOn 24 September 2021, a meeting on Disbursement of KWC-19 Funds for Implementation of PENJANA
Reskilling and Upskilling Programmes Agreement was participated by MSI. The objective of this meeting is todiscuss to improve on several areas i.e. funding, reporting and schedule to smoothen the programme
implementation. The Meeting was chaired by Puan Zaireen Omar, Director of Trade & Industry Related
Emerging Issues Division of MITI.

[AUTHOR NAME]

3

VIRTUAL MEETING ON COA NON-COMPLIANCE FOR IRON & STEEL PRODUCTS
On 23 September 2021, a virtual meeting on COA Non-Compliance for Iron & Steel Products was organized byMSI. The meeting was attended by MITI (BPI), CUSTOM, SIRIM QAS, CIDB, Port Klang Authority, Westport,Northport, Suruhanjaya Pelabuhan Pulau Pinang, Penang Port Sdn Bhd, Johor Port Authority, Sabah Port
Authority and Sabah Port Sdn Bhd. The objective of this meeting is to get a good understanding of the processand procedures of the importation, clearance of goods but most importantly, on the treatment of the noncompliance iron & steel products post issuance of non-compliance letter. Valuable feedbacks and views werepresented during the discussion which will help towards better management of iron & steel products that werenon-compliant.

[AUTHOR NAME]

4

MSI BRIDGING GAPSLAUNCHING OF MYRESKILL IOT PROGRAM
On 2 September 2021, MyReskill IoT program was launched. This is a five and a half days virtual workshop
plus one-week hand-holding in developing Proof-of-Concept. MSI was invited to attend the programme. Theobjective of this program includes:- To assist companies in the adoption of Industry 4.0 among the local industries- To train the industry IoT knowledge and skill-set for the non-coding workforce so that they can remain
relevant in the job market- To support, coach, prepare and enable 5000 participating companies to carry out IoT project within theircompanies.

[AUTHOR NAME]

5SOCSO'S REGIONAL RETURN TO WORK (RTW) DIGIMOS SYMPOSIUM 2021
SOCSO's Regional Return to Work (RTW) DIGIMOS Symposium 2021 took place on 6 & 7 September 2021 via
Webex and Facebook Live. This is the first time the event was organized by SOCSO in a hybrid concept to bein line with the element of digital atmosphere (DIGIMOS) which has recently been practised by allcommunities throughout the world in the current pandemic period.
This year, RTW DIGIMOS Symposium 2021 theme focuses on "Navigating Disability Management Through theNew Normal: Return to Work Process Re-Engineering".
RTW DIGIMOS Symposium 2021 was participated from various levels and professional backgrounds fromvarious countries in the Southeast Asia. One of the main objectives of this symposium is to explore the latestdimensional disability management concept by leveraging this platform not only to facilitate opportunities
for collaboration and networking but also to exchange ideas, innovations, and research results in evidence based practice with various levels of world-renowned leaders and experts especially in Southeast Asiacountries.

[AUTHOR NAME]

6WEBINAR ON MALAYSIA STRATEGIC TRADE CONTROL COMMUNITY (MYSTCC)The Strategic Trade Act was enacted in 2010 to provide control over the export, transhipment, transit andbrokering of items/materials that may facilitate the design, development and production of weapons of mass
destruction consistent with Malaysia’s national security and international obligations. The objective of thewebinar was to obtain feedback on the idea of establishing an Export Control Community (EEC) throughengagement with the various relevant parties – termed in short as MySTCC. The idea for the formation ofMySTCC is for STS to concentrate on licensing and enforcement, whereas MySTCC to play the role ofpromotion/outreach. MySTCC is still at preliminary concept stage – what form it should take - should it be aprogramme under STS or privately run.
To assist the discussions, two presentations were delivered:
1. Introduction to MySTCC – by Datin Mega Marissa Malek, Senior Principal Assistant Director, Strategic
Trade Secretariat, MITI; and2. Sharing Best Practices – Brief Overview on International Export Control establishments – by Mr. GeorgeTan, President, CAPTICS.
Opening remarks was made by Ms Ellyza Mastura, Head STS, MITI, who welcomed all participants, gave thebackground to the formation of MySTCC and the consultative approach to coming to determine the final formof MySTCC and sort support from all parties. After the presentations there was active participation from allparties present and each party was invited to present their views on the way forward in working with MySTCC
especially in the outreach activities. The meeting concluded by requesting all participants to submit a survey
questionnaire by 4 October 2021.

[AUTHOR NAME]

7

MSI TRUPENJANA TRAINING PROGRAMMEOn 3 September 2021, the first closing session of the PENJANA programme was held via online. After MSI
had organised the 10-days online training programme, the participants will continue with a 2 months on-jobtraining (OJT) at the steel company.

[AUTHOR NAME]

8BRIEFING TO GRADUATES FROM ILP, TESDEC, ADTEC AND JMTIOn 14 September 2021, MSI conducted a briefing to graduates from ILP, TESDEC, ADTEC and JMTI. This briefing
aims to give an introduction on MSI and PENJANA programme. This programme was attended by 12participants.

BATCH 2: PROGRAMME ON ENHANCED EMPLOYABILITY OF UNEMPLOYED WORKERS AND
NEW GRADUATES IN THE IRON AND STEEL INDUSTRY UNDER PENJANA PROGRAMMEOn 24 September 2021, 17 participants of Batch 2 Programme on Enhanced Employability of Unemployed
Workers and New Graduates in the Iron and Steel Industry Under PENJANA Initiative Reskilling and Upskilling
Programme has completed the 10 days classroom training. All participants will begin their on-job-training withthe Iron and Steel companies that has offered them job opportunities.

[AUTHOR NAME]

9BATCH 3: PROGRAMME ON ENHANCED EMPLOYABILITY OF UNEMPLOYED WORKERS AND
NEW GRADUATES IN THE IRON AND STEEL INDUSTRY UNDER PENJANA PROGRAMMEOn 28 September 2021, the third briefing session of the PENJANA training Programme was held virtually. The
third batch of the PENJANA programme was participated by 25 participants. The participants began the 10days training on 29 September 2021.

[AUTHOR NAME]

10STEEL FACTS[AUTHOR NAME]

11

EVENTS HIGHLIGHT[AUTHOR NAME]

12

[AUTHOR NAME]

13

STEEL NEWS
1. Steel Shipments among August Highlights at Port of Thunder Bay
Date: 2 September 2021
Source: https://www.cbc.ca/news/canada/thunder-bay/thunder-bay-port-august-1.6162473

The Port of Thunder Bay saw lower grain shipments in August compared to the same month in 2021.
(Captain Nathan Dawson/Thunder Bay Tug Services)

August grain shipments at the Port of Thunder Bay hit a three-year low for the month due to a reduced
harvest, the port said Thursday. Year-to-date grain shipments are now one million metric tonnes lower than
2020, which saw a 25-year high in volume.
Chris Heikkinen, port director of business development and communications, said this year's grain volumes
are a return to normal.
While it's difficult to guess what will happen for the rest of the shipping season, it's probable grain volumes
will come down, he said.
"The harvest production analysts ... are predicting a much-reduced harvest this year compared to what
we've seen, say, the last four or five seasons," he said. "The drought and the heat on the Prairies are
impacting that.""We certainly won't see 25-year high volumes that we experienced in 2020, probably closer to normal oreven just below that."
Steel demand drives rise in imports
According to statistics provided by the port, last month saw about 566,400 metric tonnes of grain passthrough the port, down from about 782,000 metric tonnes in August 2020.
August highlights included Keefer Terminal's largest shipment of European steel rail since steel imports
began six years ago.
Steel demand is being driven by construction in Western Canada, the port said. Bulk potash exports
continue to rebound, with year-to-date volumes now above average, the port said. Coal shipments werealso up this August compared to the same month a year ago. Twenty-three domestic vessels and 11 foreign
vessels called at the port in August 2021.
[AUTHOR NAME]

14

2. Leon Fuat Q2 Net Profit Climbs on Higher Steel PricesDate: 9 September 2021
Source: https://www.thestar.com.my/business/business-news/2021/09/09/leon-fuat-q2-net-profitclimbs-on-higher-steel-prices
KUALA LUMPUR: Leon Fuat Bhd, a manufacturer and trader of steel products, said earnings surged in thesecond quarter boosted by higher selling prices.
Net profit for the three-month ended June 30 was RM32mil compared with RM2.7mil a year ago. Revenue
shot up 73% to RM185mil.
“We are pleased with the positive result, and we remain
year although there are uncertainties affecting thisCalvin Ooi Shang How said in a statement today.

optimistic for the rest of theoutlook.” executive director

Ooi said the surge in steel prices globally since last year
recovery and the gradual reopening of economies around the world.

was supported by economic

The expected rebound will unleash pent-up industrial demand which will hopefully maintain upward
momentum for the steel sector.
“For Malaysia, we are seeing a gradual relaxation of containment measures alongside the rapid progress ofthe domestic vaccination programme would lead to rebound of the economy. We support the governmentmeasures to transition society back to normality soon and an emphasis on rejuvenating the economy." hesaid.
Leon Fuat is mainly involved in trading and processing of flat and long steel products. The company said its
business performance is tied to the prices of its steel products besides demand from customers.
"In this respect, global factors such as volatility in commodities and crude oil prices as well as significant
fluctuation in exchange rate of foreign currencies against ringgit will affect our suppliers’ pricing and hence
the profitability of our steel products as some of our merchandise and raw materials are sourced fromoverseas," it said.

3. One of the World’s Largest Stainless-Steel Producers Going Green
Date: 14 September 2021
Source: https://www.hellenicshippingnews.com/one-of-the-worlds-largest-stainless-steelproducers-going-green/
The city of Ningde in east China’s Fujian Province is home to one of the world’s largest stainless-steel
producers. And as China continues to spare no effort to achieve carbon neutrality, the company is also
going green.
The tip of a ballpoint pen is the most crucial part. But manufacturing this tiny part requires highprecision machinery and extremely thin steel.

[AUTHOR NAME]

15

As small as this ballpoint pen tip is, it has taken China – the world’s largest ballpoint pen producer –years to shake off reliance on imports to create it.
Tsingtuo Group is one of the largest producers of such materials. The stainless steel produced by thegroup meets the requirements for making ballpoint pens. And it already accounts for 20 percent ofChina’s market share.
China used to rely on imported feedstocks to make ballpoint pen tips until 2017 when a domesticallydeveloped stainless steel model only 2.3 millimeters thick came out.
In 2020 Tsingtuo Group unveiled a product that was only 1.6 millimeters thick. The keyword behind
this is technological innovation.
“The traditional ballpoint pen tip steel is made of lead. Lead has a certain degree of toxicity. Therefore,during research and development, we are pursuing non-toxic and harmless materials,” said Xi Feifei
from the Tsingtuo Research Institute of Tsingtuo Group.
And the company is putting more effort into going green. It has set up systems to monitor the energy
consumption of its factories. They will be compared to national and even world standards.
“We have invested 300 million yuan in building two three million-tonne stainless steel waste
treatment systems. This is one of the world’s leading cases of stainless-steel slag and it can beprocessed without leaving the industrial park,” said Zhong Shengjiang, executive general manager atTsingtuo Group.
The company has also made considerable investments in the new energy sector. Facing a harder cap
on carbon emissions and a higher goal of carbon neutrality, it’s worth watching how manufacturers
like Tsingtuo look towards carbon neutrality while continuing development.

[AUTHOR NAME]

16

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 Iron and steel industry; to provide advisory services and to carryout commission or promote the study of scientific, technology and economic aspects of iron and steel industry development in
Malaysia; and to promote iron and steel product standardization and utilization within Malaysia. For more information, please
visit malaysiasteelinstitute.com and follow us on Facebook, Twitter, LinkedIn and YouTube.
Tell us what you think of our newsflash. Your input will help us improve our services to you.
https://www.facebook.com/CommsMsi

https://www.twitter.com/CommsMsi
https://www.linkedin.com/company/malaysia-steel-institute/
https://youtube.com/channel/UChEuWGrr0DPF3-m5rpgyW2w
www.malaysiasteelinstitute.com
MALAYSIA STEEL INSTITUTE
Level 26, Menara MITINo. 7, Jalan Sultan Haji Ahmad Shah
50480 Kuala Lumpur

ADVERTISEMENT[AUTHOR NAME]

17