June
THE STEEL NOTICEBOARD
2023

30 January 2023

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

02 Rebar

03 Steel Wire Rod

RM2,700 - RM2,760

RM2,685 - RM2,812

RM2,720 - RM3,055

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

05 Iron Ore

RM1,572 - RM1,747

RM416 - RM477

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02Trade Performance
Malaysia's Trade
Performance
January-June 2023
Malaysia’s iron and steel total trade value in June 2023
contracted by 10.9 percent to RM5.7 billion compared to RM6.4
billion in June 2022 for the same period. Trade balance has
improved from trade deficit of RM744.8 million to trade surplus
of RM551.3 million for the same comparison period.
Malaysia’s iron & steel export in June 2023 expanded by 10.7
percent to RM3.1 billion from RM2.8 billion in June 2022. Threemain export destinations in June 2023 were Indonesia, Hong
Kong and Singapore accounting for 17.1, 13.1 and 12.6 percent of
the total export value respectively.
Malaysia’s iron & steel import in June 2023 contracted by 27.8
percent to RM2.6 billion from RM3.6 billion in June 2022. Imports
from China, Japan and Korea accounted for the top three (3)spots representing 26.0, 17.6 and 11.6 percent of the total importvalue respectively.
From January to June 2023, the total trade value of the ironand steel products stood at RM30.1 billion in 2023 compared to
RM36.1 billion in the same period in 2022, a reduction by 16.6
percent. Further, the trade balance widened from a trade
deficit of RM748.4 million in 2022 to a trade deficit of RM839.2
million in 2023 during the same period of comparison.
by Juliana Ahmad

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03

Malaysia Trade Performanceof Iron & Steel Industry
Month Trade Value
June 2023: RM5.7 billion

10.9% M-o-M change

June 2022: RM6.4 billion

Month Balance of Trade
June 2023: RM551.3 million
Trade Surplus

174.0% M-o-M change

June 2022:01
RM744.8 million
Trade Deficit

Month
02 Export
June 2023: RM3.1 billion

10.7% M-o-M change

June 2022: RM2.8 billion

Month Import
June 2023: RM2.6 billion

27.8% M-o-M change

June 2022: RM3.6 billion

YTD Trade Value
Jan - June 2023: RM30.1 billion

16.6% Y-o-Y change

Jan - June 2022: RM36.1 billion

YTD Balance of Trade
Jan - June 2023: RM839.2 million
Trade Deficit
Jan - June 2022: RM748.4 million
Trade Deficit

12.1% Y-o-Y change

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04

Courtesy Visit to Dato’ Sri Norazman Ayob, Former Chairman of
Malaysia Steel InstituteAs a gesture of respect and in appreciation of his years ofdedicated service, a delegation from Malaysia Steel Institutepaid a courtesy visit to the former chairman of MSI, Dato’ Sri
Norazman Ayob on 9 June 2023. The visit is in recognition of
Dato' Sri’s exceptional leadership and to express gratitude forhis invaluable contributions to MSI. The meeting, marked bywarm reminiscences and a glimpse into the company's future,
served as a testament to the enduring impact of Dato’ Sri
Norazman Ayob’s tenure.

The delegation, comprising Chief Executive Officer of MSI, Mr.
Lim Keng Yow and Ms. Syakirah Ibrahim, Assistant Manager for
Industry Relations & Liaison, called on Dato’ Sri Norazman Ayob
at his new office at the Ministry of Health (MOH).
Dato’ Sri Norazman Ayob, known for his humble demeanour,
graciously accepted the recognition but quickly shifted thefocus to the present and future. He eagerly inquired about theorganisation's current strategic initiatives, emerging industry
trends, and the challenges faced by MSI in today's competitive
landscape. It was evident that his passion for the industry andgenuine concern for the organisation's progress remained asstrong as ever.
by Syakirah Ibrahim

Launching of New Scheme Fund by MIDF and Second Chance
Financing by YB Senator Tengku Datuk Seri Utama Zafrul Tengku
Abdul Aziz, Minister of Investment, Trade and Industry
The Second Chance Financing scheme is designed toprovide crucial support to small and medium-sizedbusinesses that are still facing financial difficulties
due to the COVID-19 pandemic and the ongoing
economic challenges. The scheme extends financial
aid and offers advisory services that can effectively
address cash flow issues, enabling struggling
businesses to avoid bankruptcy and regain stability.
by Lai Leong Chon

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05

MSI 10th Annual General Meeting
On 26 June 2023, the MSI 10th Annual General Meeting (AGM) took place at Bilik Seminar 1, Menara MITI.
During the AGM, achievements, activities, and financial performance of MSI for the period July 2022 toJune 2023 were presented. The event was attended by esteemed individuals, including MSI's Chairman,
Datuk Hanafi Sakri, Deputy Secretary General (Industry) of the Ministry of Investment, Trade and Industry(MITI), who chaired the meeting, the board members of MSI, leaders from the iron and steel industry
association, and various industry players.
The AGM provided an opportunity for the Board of Directors (BOD) and MSI members to gather andreceive a comprehensive overview of the organisation's progress and performance over the past year. It
served as a platform for sharing information, discussing strategies, and setting goals for the future.
Apart from the formal presentations, the AGM served as a platform for networking and fostering
relationships among industry leaders and players. Attendees had the opportunity to engage indiscussions, exchange ideas, and explore potential collaborations for future projects.
by Syafiq Daniel

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06

Workshop:Nationally Determined Contribution (NDC) and Long
Term-Low Emissions Development Strategy (LT-LEDS)
MSI attended the Sector Working Group (SWG)
Workshop No. 1 For Nationally Determined Contribution(NDC) and Long Term-Low Emissions Development
Strategy (LT-LEDS) Project on 15 June 2023 in Putrajaya.
The objective of the workshop is to obtain input related
to policy, planning and implementation of action plans
under the respective ministries/agencies for the Energy,
Industrial Processes and Product Use (IPPU), Agriculture,
Forestry and Land Use (AFOLU), and waste sectors.
The inputs provided at the Working Group will contributetowards the development of the National Determined
Contribution Roadmap and Action Plan (NDC Roadmap)
and Long-Term Low Emissions Development Strategies(LT-LEDS) to fulfil the country's obligations under theUnited Nations Framework Convention on Climate
Change (UNFCCC) and the Paris Agreement.
by Juliana Ahmad

Briefing:Industrial Processes and Product Use (IPPU) for Nationally
Determined Contributions (NDC) and Long-Term Low Emissions
and Development Strategy (LT-LEDS)
On 20th June 2023, the Ministry of Investment, Trade andIndustry (MITI) in collaboration with the Ministry of
Natural Resources, Environment and Climate Change(NRECC) organised a briefing session on the Industrial
Process and Product Use Sector (IPPU) for Nationally
Determined Contributions focusing on the IPPU sector
where input from the sector will be taken into account in
the development of policy documents. The Nationally
Determined Contribution (NDC) and Long Term – Low
Emission Development Strategy (LT-LEDS) policy
documents that are drafted will be submitted to the
UNFCCC to fulfil the country's reporting obligations to theconvention.
by Lee Hooi Lan

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07

Mesyuarat Jawatankuasa Bersama Penyelarasan Industri (JBI)
di antara MITI dengan Kerajaan Johor
On 22th June 2023, Mr. Lim Keng Yow, the CEO of MSI attended the Mesyuarat Jawatankuasa Bersama
Penyelarasan Industri (JBI) Johor 2023, held in Iskandar Puteri, Johor. The purpose of this meeting was tocoordinate the State Government's policies and initiatives to be in alignment with the Government's
aspirations to strengthen Malaysia's position as a preferred investment destination, enhance tradeperformance, and ensure sustainable industrial development. The meeting was co-chaired by YAB Datuk
Onn Hafiz Bin Ghazi, the Menteri Besar of Johor, and YB Senator Tengku Datuk Seri Utama Zafrul Bin Tengku
Abdul Aziz, the Minister of Investment, Trade and Industry (MITI).
Overall, Mr. Lim Keng Yow's attendance at the Mesyuarat Jawatankuasa Bersama Penyelarasan Industri(JBI) Johor 2023 reflected MSI's commitment in supporting the government's initiatives in strengthening
Malaysia's position as an attractive investment destination. By actively participating in such meetings, MSI
demonstrated its willingness to contribute to sustainable industrial development and economic growth in
the region.
by Syafiq Daniel

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08

Launching of RMK12 Extensive Training Programme (Batch 5)
On 6th June 2023, the 5th batch of the RMK-12
Iron and Steel Industry Training Programme Extensive was launched via virtual mode. This
programme saw the participation of 17 workers
from three steelmaking companies. All theparticipants were committed to attending the
15-daytraining
conducted
byseveralexperienced trainers, followed by one (1) monthof On-Job-Training (OJT) in the respective
companies.
by Lai Leong Chon

Meeting with Ye Chiu NonFerrous Metal (M) Sdn. Bhd. on
Human Capital Development
On 8th June 2023, MSI visited Ye Chiu Non-Ferrous Metal (M)Sdn. Bhd. to explore development of customised training
programmes to meet the company’s training need. The
meeting was able to identify focused areas for thedevelopment of training modules.
by Lai Leong Chon

Meeting with Perusahaan Sadur
Timah Malaysia (PERSTIMA) Berhadon Human Capital Development
MSI visited Perusahaan Sadur Timah Malaysia (PERSTIMA)
Berhad to promote HRD Corp Claimable Customised Training
Programme on 9 June 2023. PERSTIMA has shared their training
need analysis processes with MSI and both parties agreed to
explore potential collaboration in human capital developmentin 2024.
by Lai Leong Chon
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09

Briefing on RMK12 Upskilling Training Programme (Batch 2)

The training was attended by 10 existing workers from Lion Steel Sdn. Bhd. and Amsteel Mills Sdn. Bhd.
based on the new module developed by MSI in 2023 i.e., Module Rolling Mill Process and Product Quality.
The 10-day training was conducted by several experienced foreign trainers from Eastern Branch China Iron
and Steel Research Institute (CISRI) and supported by a local tutor.
by Lai Leong Chon

Coordinate Customised Training (HCP) at Melewar Steel Tube,
Shah AlamOn 26th June 2023, MSI coordinated a training session titled "Hearing Conservation Programme (HCP)" at
Melewar Steel Tube Sdn. Bhd. in Shah Alam. The training was attended by 22 participants. The Hearing
Conservation Programme (HCP) training programme is a comprehensive and educational initiative designed
to raise awareness and promote the importance of preserving and protecting one's hearing in various work
environments. This training programme equips participants with the knowledge and skills necessary to
prevent hearing loss and follow healthy hearing practices. The training programme also emphasises theproper usage and care of personal protective equipment (PPE), such as earplugs and earmuffs, to minimise
the risk of hearing damage.
Participants also received guidance on how to identify and report potential hearing hazards in the workplace,ensuring a safer working environment for themselves and their colleagues.

by Muhammad Amier
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10Briefing on RMK12 Upskilling Training Programme (Batch 3)

On 27th June 2023, the third batch of the RMK-12 Iron and Steel Industry Training Programme - Upskilling ofSpecific Technical Knowledge Training, commenced at Malaysia Steel Works (KL) Bhd. in Klang. Ten (10)existing employees consisting of senior manager, managers, engineers, and supervisor of the company,
took part in the training to learn more about Rolling Mill Process and Product Quality. The 10-day training
was delivered by several international trainers from the Eastern Branch of China Iron and Steel ResearchInstitute (CISRI) virtually, and supported by a local tutor on site in translation and demonstration.
by Lai Leong Chong

Note: This training is carried out at no cost to the company and is paid by the Government. Any company
interested to get more details kindly contact: Mr. Leon @Tel: 03-62084653 or email:leon@malaysiasteelinstitute.com

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11

Steel FactsDID YOU
KNOW?

Fun fact aboutsteel

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12

GLOBAL
STEEL

NEWS

Greening the Steel Industry: A Tale of
Cost and Opportunity
BY BLOMMBERG
18 MAY 2023
SOURCE: HTTPS://WWW.MORGANSTANLEY.COM/IDEAS/GREEN-STEEL-LOW-CARBON

The steel industry is racing to curb its carbon emissions, creating an
advantage for companies that adapt quickly.
Key Takeaways
Steelmakers are responsible for 7% to 9% of the world’s carbon
emissions.
To meet ambitious climate goals, the steelmaking process will have todecarbonize.
“Green” hydrogen, renewable electricity and electric arc furnaces will be
critical to the transition.
Decarbonization will require significant capital investment, but
regulatory requirements might make it more costly for companies thatfail to transform.
The material that powered the Industrial Revolution is undergoing asustainability transformation as steelmaking moves from carbon-based
production to a process fueled by hydrogen.
Currently, traditional steelmaking emits approximately 3.6 billion metrict o n s o f c a r b o n d i o x i d e a y e a r a n d a c c o u n t s f o r a s mu c h a s 9 % o f w o r l demissions, according to the World Steel Association.
With many countries aiming to reduce carbon emissions to net zero overthe coming decades, industry leaders are looking to decarbonize thesteelmaking process: either eliminating carbon from production or
capturing and reusing the CO2 that is created.
That means the entire steelmaking supply chain will need an overhaul,
including the industry’s use of renewable energy, the integration ofhydrogen in the process, the ways in which iron ore is mined andprocessed, and the offerings of capital equipment providers.
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13

It’s expected to be an extremely expensive and time-consuming
undertaking—but businesses that don’t modernize could be left behind.
“The investments required to decarbonize are likely to exceed $1,200 per
metric ton of capacity. For the average steel company producing, say, 5
million tons of steel per year, that would equal approximately $6 billion
in capital expenditures,” says Alain Gabriel, Morgan Stanley’s Head ofEurope Metals and Mining Research. “The companies that have the best
access to low-cost renewable energy, as well as those that can achieve
integration through the supply chain, will gain competitive advantage.”

Gl obal Moves to Decarboni ze
As companies determine the best way forward, a key consideration willbe the availability of hydrogen to replace coal in the production process.
“Eliminating carbon emissions completely will require the zero-emission
option known as ‘hydrogen-based direct reduced iron with electric arc
furnace,’ which relies on renewable electricity,” says Gabriel.
Ultimately, the type of hydrogen used will determine the carbon footprintof the steel produced. “Green” hydrogen is created through electrolysis, arenewable process, which makes it the most eco-friendly. It’s also themost limited in supply today because of the significant amount of
renewable energy it takes to produce, as well as the small size of theelectrolyzer industry. “Blue” hydrogen comes from captured carbon andwill be in high demand as the industry works to eliminate its use of “gray”
hydrogen, a natural-gas byproduct.
The U.S. is ahead globally in terms of more environmentally friendly steel
technology, having already adopted electric arc furnaces—a lesscarbon-intensive method than the traditional furnaces that account for
71% of global production. The U.S. still has work to do, but U.S. steel
producers could see benefits from potential subsidies for green hydrogen
under the Inflation Reduction Act and, in general, better access tocheaper clean energy. This should give U.S. producers the benefit of time
to assess the best tech investments to bring them closer to net zero overthe next decade.
In contrast, for steelmakers in Europe, the transition to hydrogen steel
would require approximately $130 billion of investment (before grants),
an 8% increase in the region’s power generation and more than fivemillion metric tons of green hydrogen capacity. Europe is not only
lagging the U.S. in its technology but is also under greater regulatory
pressure, as policies and net-zero goals force a shift to more ecofriendly processes. This includes the continent’s December 2022
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14

agreement aiming to eliminate free carbon allowances by 2034, which
would go hand-in-hand with a carbon border tax on imports based on
the amount of carbon emitted in their production.
Meanwhile, China and India, together responsible for two-thirds of global
steel emissions, are still highly dependent on coal. The two megaeconomies have sharpened their decarbonization plans, but the pace is
expected to be determined by their need to balance economic growthwith climate commitments.
“China and India’s current access to low-cost renewables would only
cover a small proportion of output,” says Gabriel. “This may result in a
two-tiered market that increasingly places a higher value on green
steel.”As steelmakers progress towards greener production methods, Gabriel
expects that the use of steel scrap in place of iron in electric arc
furnaces will be another avenue to reduce emissions. While this process
may face supply constraints of high-quality scrap, it produces
significantly less carbon than what traditional furnaces give off.

Ultimately, the companies that decarbonize the fastest are more likely togenerate and retain excess returns, while laggards will see theircompetitiveness, market share and earnings power erode.
Alain Gabriel
Head of Europe Metals and Mining Researchhttps://malaysiasteelinstitute.com/

15

A Necessary Evol uti on
Indeed, companies may initially need to charge a premium on theseproducts to cover the cost of retrofitting production methods that dateto the Industrial Revolution. In Europe, for instance, decarbonized steel
would need to generate an additional $115 per ton just to break even—and that assumes competitive costs for renewable energy and 50% in
grants.
But a number of factors, especially in Europe, have made the cost of not
evolving likely far steeper than going green. European steel producers
could face a 70% decline in earnings before interest, taxes, depreciation
and amortization (EBITDA) if they fail to decarbonize.
Investors should take note of companies that can adapt to the changing
landscape and help make the steelmaking process greener. As the steel
industry bends toward sustainability, green-hydrogen suppliers andlarge-scale renewable energy developers are also poised to prosper.
“Ultimately, the companies that decarbonize the fastest are more likely
to generate and retain excess returns, while laggards will see theircompetitiveness, market share and earnings power erode,” Gabriel says.
For an in-depth look at the future of the decarbonizing the steel
industry, ask your Morgan Stanley representative or Financial Advisor for“Green Steel 2.0” (April 17, 2023).

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16

Date//Time//Year

About MSI
Malaysia Steel Institute (MSI) is an industry driven enterprise
supported and funded by the Ministry of Investment, 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 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.

Comms.MSIOur Super Team

Syakirah Ibrahim

Assistant Manager, IRL

Jarrod Lim

Chief Executive Officer

Syafiq Daniel
Executive, IRL

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17

TRAINING PROGRAMME
2023
PROGRAMME LIST:QUALITY MANAGEMENTSAFETY MANAGEMENTTRADE PRACTICESTECHNICALSOFT SKILLSENVIROMENTAL, SOCIAL AND
GOVERNANCE (ESG)
Scan for more info

More Informationwww.malaysiasteelinstitute.com
training@malaysiasteelinstitute.com

January 2023

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Thank
You
Because, we're here to help
Thank you for taking the time to read this Newsflash. Yourattention and interest are greatly appreciated. If you haveany questions or comments, please feel free to reach out tous.

Address

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No. 7 Jalan Sultan Haji Ahmad Shah,
50480 Kuala Lumpur

Telephone

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EmailSyafiq Daniel: daniel@malaysiasteelinstitute.com
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Month02 Export
Jan - June 2023: RM14.6 billion

17.5 % M-o-M change

Jan - June 2022: RM17.7 billion

Month Import
Jan - June 2023: RM15.5 billion
Jan - June 2022: RM18.4 billion

15.8 % M-o-M change

YTD Trade Value
Jan - June 2023: RM30.1 billion
Jan - June 2022: RM36.1 billion

16.6% Y-o-Y change

YTD Balance of Trade
Jan - June 2023: RM839.2 million
Trade Deficit
Jan - June 2023: RM748.4 million
Trade Deficit

12.1% Y-o-Y changeTrade Value

Trade Balance

Y-o-Y change

Y-o-Y change

16.6% 12.1%
Jan - June 2023: RM30.1 billion
Jan - June 2022: RM36.1 billion

Jan - June 2023: RM839.2 million
Trade Deficit
Jan - June 2022: RM748.4 million
Trade Deficit

Trade Value

Trade Balance

M-o-M change

M-o-M change

6.2% 97.9%

Jan - Dec 2022: RM66.8 billion
Jan - Dec 2021: RM62.9 billion

Jan - Dec 2022: RM83.9 million
Trade Deficit
Jan - Dec 2021: RM4.0 billion
Trade Deficit