August 2021

NOTICEBOARD

THE STEELBILLETREBARSTEEL WIRE ROD

RM2,889

RM3,175

RM3,263

SCRAPIRON ORE

RM2,000

RM691

TRADE PERFORMANCE
Malaysia’s Trade Performance from January - August 2021
Malaysia’s Iron and Steel trade value in August 2021 was recorded at RM5.2 billion, an increase by 39 percent
compared to RM3.8 billion in August 2020. Trade balance contracted from trade surplus of RM379.3 million
in August 2020 to trade deficit of RM364.6 million in August 2021.
Malaysia’s export in August 2021 rose by 17 percent to RM2.4 billion from RM2.1 billion in August 2020. The
three main export destinations in August 2021 were to China, Taiwan and Thailand which represent about 54percent, 6 percent and 5 percent of the total export value in the respective month.
Malaysia’s import in August 2021 grew by 65 percent to RM2.8 billion from RM1.7 billion in August 2020.
Malaysia’s top three import countries in August 2021 were China, Japan and Indonesia which represent about
20 percent, 19 percent and 14 percent of the total import value in the month respectively.
From January to August 2021, the trade value of the Iron and Steel products stood at RM38.9 billion in 2021
compared to RM32.2 billion in the same period of 2020, expanded by 21 percent. Trade balance has widened
from trade deficit of RM783.4 million in January to August 2020 to trade deficit of RM4.2 billion during thesame period of 2021.

Malaysia Trade Performance of Iron & Steel Industry
Aug 2021: RM5.2billion

Month Trade Value
39.0 % M-o-M change

Aug 2020: RM3.8billion

Aug 2021: (RM364.6million)
Trade Deficit

Month Balance ofTrade
196.0 % M-o-M change

Aug 2020: RM379.3 million
Trade Surplus
Month Export
Aug 2021: RM2.4billion
17.0 % M-o-M change

Aug 2020: RM2.1billion

Month ImportAug 2021: RM2.8billion

65.0 % M-o-M change

Aug 2020: RM1.7billion

YTD Trade Value
Jan-Aug 2021: RM38.9billion
21.0 % Y-o-Y change

Jan-Aug 2020: RM32.2billion

Jan-Aug 2021: (RM4.2billion)
Trade Deficit
Jan-Aug 2021: (RM783.4million)
Trade Deficit

YTD Balance of Trade437.0 % Y-o-Y change

2MSI WITH YOUPENJANA PROGRAMME WITH ANN JOO, MITEC AND MINISTRY OF HUMAN RESOURCE (MoHR)
On 11 August 2021, a meeting with Ann Joo, MITEC and Ministry of Human Resource (MoHR) on PENJANAProgramme was attended by MSI. The objective of this meeting was to discuss on the recruitment of participants
for the PENJANA Programme. MSI will follow-up with Ministry of Human Resource (MoHR) to enroll the relevant
candidates for this programme.

3

MESYUARAT JAWATANKUASA PENGURUSAN KEWANGAN DAN AKAUN PERINGKATKEMENTERIAN SUKU TAHUN KEDUA 2021
On 12 August 2021, Dato’ Lokman Hakim Ali, Secretary General of Ministry of International Trade and Industry(MITI) chaired the Mesyuarat on Jawatankuasa Pengurusan Kewangan dan Akaun Peringkat Kementerian SukuTahun Kedua 2021 which was attended by MSI. The Status of the PENJANA Upskilling and Reskilling Programmes
under MITI and agencies including MSI’s Enhance Employability of Unemployed Workers and Fresh Graduatesin the Iron and Steel Industry were updated in the meeting.

4FAREWELL TO SENIOR MINISTER AND DEPUTY MINISTER OF MITI
On 16 August 2021, MITI and agencies bid farewell to YB Dato' Seri Mohamed Azmin bin Ali, Senior Minister ofMITI and YB Senator Datuk Lim Ban Hong of MITI for their contribution after serving since 11 March 2020 at theMinistry of International Trade and Industry (MITI). On 27 August 2021, MITI and its agencies welcomed Dato’
Seri Mohamed Azmin bin Ali and Y.B Senator Datuk Lim Ban Hong who have been reappointed as the Senior
Minister and deputy minister respectively of the Ministry of International Trade and Industry (MITI).

5SESI LIBAT URUS PELAKSANAAN AMALAN BAIK PERATURAN ATAU GOOD REGULATORY
PRACTICE (GRP) BERSAMA PENYELARAS PERATURAN
On 25 August 2021, MPC had organised a “Sesi Libat Urus Pelaksanaan Amalan Baik” or Good Regulatory Practice(GRP) with the regulatory coordinator. The session was also joined by MSI. This event aimed to drive theregulatory reform through active involvement of the regulatory coordinator in ministries and agencies. The event
also focuses on the importance of good regulatory practices (GRP) among policy makers to ensure the quality ofpolicies and regulations. The event ended with a dialogue session among the participants.

6

MSI TRUMESYUARAT PENYELARASAN PROGRAM RESKILLING & UPSKILLING MITI DAN AGENSI BAWAH
INISIATIF PENJANA BIL.2 TAHUN 2021
On 9 August 2021, the latest progress of the Programme on Enhanced Employability of Unemployed Workers andFresh Graduates in the Iron and Steel Industry was presented by MSI in the Mesyuarat Penyelarasan Program
Reskilling & Upskilling MITI Dan Agensi Bawah Inisiatif Penjana Bil. 2 Tahun 2021. This meeting was chaired byYBhg. Dato’ Lokman Hakim Ali, Secretary General of Ministry International Trade and Industry (MITI).

7PENJANA JOINT PROGRAMME WITH MSI AND MITEC
On 20 August 2020, a briefing to the first batch of participants from the PENJANA Programme was organised byMSI and MITEC. This briefing gave a general information to the participants on this programme. The briefing wasattended by 21 participants.

8

STEEL FACTS

9

EVENTS HIGHLIGHT

10

11

STEEL NEWS1. ‘Green Steel’: Swedish Company Ships First Batch Made Without Using Coal
Date: 19 August 2021
Source: https://www.theguardian.com/science/2021/aug/19/green-steel-swedish-company-ships-firstbatch-made-without-using-coalHybrit sends steel made with hydrogen production process to Volvo, which plans to use it in prototypevehicles and components

The world’s first customer delivery of “green steel” produced without using coal is taking place in Sweden,according to its manufacturer.
The Swedish venture Hybrit said it was delivering the steel to truck-maker Volvo AB as a trial run before
full commercial production in 2026. Volvo has said it will start production in 2021 of prototype vehicles
and components from the green steel.
Steel production using coal accounts for around 8% of global greenhouse gas emissions. Hybrit started test
operations at its pilot plant for green steel in Lulea, northern Sweden, a year ago. It aims to replace coking
coal, traditionally needed for ore-based steel making, with renewable electricity and hydrogen. Hydrogenis a key part of the EU’s plan to reach net zero greenhouse gas emissions by 2050.
Hybrit is owned by the steelmaker SSAB, state-owned utility Vattenfall and miner LKAB.
SSAB accounts for 10% of Sweden’s and 7% of Finland’s carbon dioxide emissions. It said the trial delivery
was an “important step towards a completely fossil-free value chain … The goal is to deliver fossil-freesteel to the market and demonstrate the technology on an industrial scale as early as 2026.”

12Another green steel venture, H2 Green Steel, is planning to build a fossil fuel-free steel plant in the northof Sweden, including a sustainable hydrogen facility, with production starting in 2024.
2. China Steel Firms Start Merger to Create World's Third Biggest Producer
Date: 20 August 2021
Source: https://www.reuters.com/world/china/china-steel-firms-start-merger-create-worlds-third-biggestproducer-2021-08-20/

Aug 20 (Reuters) - Chinese steelmakers Ansteel Group and Ben Gang formally began the process ofmerging their operations on Friday, the official Xinhua news agency reported, in a move that will create
the world's third-largest producer of the metal.
State-owned Ansteel is taking a 51% stake in smaller rival Ben Gang from the regional state assets
regulator, with no money changing hands in a government-backed restructuring that is part of a drive toconsolidate production in China's bloated steel sector.
The merged entity, which will retain the Ansteel name, will have annual production capacity of 63 million
tonnes of crude steel, Xinhua said, after combining the operations of the companies whose headquarters
are only some 60 km (37 miles) apart in northeast China's Liaoning province.
A special conference on the merger was held on Friday morning in the city of Anshan, it added.
The extra production will see Ansteel leapfrog HBIS Group to become China's second-biggest steelmakerand put it third globally behind only China Baowu Group and ArcelorMittal (MT.LU) .
Ansteel produced 38.19 million tonnes of crude steel in 2020, data from the World Steel Association show,while Ben Gang churned out 17.36 million tonnes.
13

By 2025, Ansteel aims to be producing 70 million tonnes of crude steel per year, as well as more than 50
million tonnes of steelmaking raw material iron ore and generating 300 billion yuan ($46 billion) in annual
revenue, Xinhua said.
A combination of Ansteel and Ben Gang has been discussed for more than a decade. The merger appeared
to be off in 2019 but a "strategic restructuring" of the companies was announced in April this year.
($1 = 6.5003 Chinese yuan renminbi)

3. Lion’s Banting Plant to Start Ops Soon
Date: 19 August 2021
Source: https://www.thestar.com.my/business/business-news/2021/08/19/lions-banting-plant-to-startops-soon

KUALA LUMPUR: Lion Industries Corp Bhd’s hot-rolled coil plant in Banting, Selangor, is expected tocommence production in December.
In a statement, the company said it is carrying out repair and refurbishment of the plant, which has a rated
annual capacity of 3.2 million tonnes.
It aims to ramp up to full production by February next year.
Meanwhile, Lion Industries is also undertaking modification work at its steel plant in Pasir Gudang, Johor,
which produces billets, steel bars and sections. It is targeted to commence production in January orFebruary next year.

14

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
the competitiveness, resilience and sustainability of the Malaysian iron and steel industry; to provide advisory services andto carry out 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 standardisation and utilisation within Malaysia. For more
information, please visit www.malaysiasteelinstitute.com and follow us on Facebook, Twitter, LinkedIn and YouTube
channel.
Tell us what you think of our newsflash. Your 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 MITI
No. 7, Jalan Sultan Haji Ahmad Shah50480 Kuala Lumpur

ADVERTISEMENT15