Malaysia-based steel producer Malaysia Steel Works (KL) Bhd (Masteel) has announced its financial results for 2016, posting a net profit of RM 21.03 million ($4.71 million), compared to a net loss of RM 50.4 million in 2015, mainly due to higher selling prices and sales volumes recorded amid improved market demand and higher rebar rolling capacities.
Malaysia Steel Works’ revenues amounted to RM 1.2 billion ($270.87 million) in the given year, up 5.5 percent year on year, mainly due to the higher margin achieved and a lower foreign exchange loss.
The company stated that the persistently higher prices of raw materials for steelmaking such as iron ore, coking coal and scrap will ensure steel bar prices remain firm with an expected fluctuation within a narrow range of 10 percent for the next few months. Meanwhile, the company expects to improve its sales volume to East Malaysia due to the mega infrastructure projects in the next five years.