Malaysia-based steelmaker Ann Joo Resources (AJR) has announced its financial results for the second quarter and first half of 2022.
Accordingly, the company posted a net profit of MYR 34.09 million ($7.59 million) for the second quarter, compared to MYR 83.69 million in the corresponding period of 2021. AJR’s sales revenues in the given quarter totaled MYR 805.93 million ($179.49 million), increasing by 19.5 percent year on year.
AJR recorded a net profit of MYR 67.01 million ($14.92 million) for the first half of 2022, compared to a net profit of MYR 157.31 million in the first half of 2021. AJR’s sales revenues in the given period totaled MYR 1.48 billion ($329.42 million), rising by 18.2 percent year on year.
According to the company’s statement, the global steel market remains extremely volatile and uncertain in the face of weaker-than expected demand in China, which has been hampered by strict Covid-19 containment measures and a distressed property sector. The prolonged Russia-Ukraine war, renewed China-US tensions and an inflation wave that is forcing central banks to raise interest rates continue to weigh on the global economic recovery and to put pressure on raw material and fuel prices.
AJR stated that, despite the foregoing, construction steel demand is likely to gain traction in the upcoming September-October construction peak period in anticipation of China’s efforts to step up fiscal and monetary measures to boost the infrastructure and property sectors. Although the improvement in infrastructure spending is unlikely to fully offset the headwinds from the property sector, it may at least moderate the downward pace of steel demand in the near future, which, when combined with steel output cuts, will lend support to steel prices.