"Malaysia Metals Report Q2 2010" now available at Fast Market Research

April 2, 2010 - PRLog -- The export-oriented nature of the Malaysian steel industry means it will be badly hit by the global economic downturn, leading  BMI to forecast a 39% fall in steel output in 2009 in its latest Malaysia Metals Report. In 2008, Malaysian steel production fell 1.4% to 6.8mn tonnes due to a 26.7% fall in exports to 2.83mn tonnes, although in value terms exports increased 6.8% to US$3.15bn due to a rise in the average steel price. Malaysian steel producers reduced their steel output from Q408 in response to a sharp drop in demand and high inventories. Steel consumption grew 5-6% year-on-year (y-o-y) to 4mn tonnes in H108, according to the South East Asia Iron and Steel Institute (SEAISI). However, H208 witnessed a sharp downturn due to the impact of the global economic situation, with leading Malaysian steelmakers  Perwaja and  Kinsteel cutting up to 35% of steel production in Q408. In Q109, many steel plants were running at less than 50% of nameplate capacity, while the Master Builders Association of Malaysia reported that monthly steel demand fell to below 50% of normal levels from December.  BMI anticipates a 39% fall in output to 4.36mn tonnes with exports down 37.5% to 1.77mn tonnes. A liberalisation of the steel trade could cause a fall in steel prices that will undermine domestic producers, particularly if electricity prices remain high. In November 2008, the government removed import duty on carbon and stainless steel long products in order to boost the local construction sector. While this could boost construction, local steel mills fear it could drive down prices and undermine their chances of tapping the positive effects of any government stimulus package. Nevertheless, we forecast a recovery from 2010, which should strengthen over the following three years with output likely to exceed the 2007 peak by 2013. The downturn is having an impact on investment in the steel industry. In response to a decline in revenue, Perwaja has delayed MYR600mn (US$163mn) worth of projects, including a new electric arc furnace (EAF) and a new blast furnace. However, some investors have retained an optimistic long-term view. In March 2009,  Bahru Stainless - a joint venture between Spain's  Acerinox (67%) and Japan's  Nisshin Steel (33%) - announced it had begun with plans to build a US$1.6bn in the Tanjung Langsat industrial area in the state of Johor. The first phase would cost US$320mn and is expected to be completed by end-2010. The plant will have an annealing and pickling capacity of 240,000 tonnes per annum (tpa), with a 182,000tpa cold rolled steel mill. When fully completed in 2020, the plant will have the capacity to produce 1mn tpa of stainless steel and 800,000tpa of cold rolled steel, with 70% destined for output. Acerinox sees Malaysia as a gateway to Asian stainless steel markets.

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Report Table of Contents:

Executive Summary
-- SWOT Analysis
-- Malaysia Political SWOT
-- Malaysia Economic SWOT
-- Malaysia Business Environment SWOT
-- Global Market Overview
Table: World's Top 10 Steel Producing Countries (mn tonnes)
Table: Recently Added And Planned Smelter Capacity
-- Aluminium Outlook
Table: BMI Aluminium Forecast
Table: Aluminium Indicators - Historical Data and Forecasts
-- Copper Outlook
Table: BMI Copper Update
Table: Copper Indicators, Historical Data and Forecasts
-- Metals Price Outlook
Table: Stock Levels At London Metal Exchange Warehouses (tonnes)
-- Global Mining Outlook
Table: Biggest Chinese Acquisitions In Australia Since 2005
Table: Global Mining - Top Five Companies By Market Capitalisation (US$mn)
Table: Global Mining - Key Players' Future Investment Plans (selected projects)
-- Asia Overview
Table: Top 10 Asian Steel Producers, 2008
-- Industry Forecast Scenario
Table: Malaysia's Metal Industry 2007-2014
-- Macroeconomic Forecasts
Table: Malaysia - Economic Activity
-- Competitive Landscape
-- Company Profiles
-- Perwaja Steel
-- Data & Forecasts
-- Lion Group
-- Global Assumptions
Table: Global Assumptions, 2007-2013
Table: Developed States GDP Growth, 2008-2010
Table: Emerging Markets GDP Growth, 2008-2010
Table: Commodity Prices, 2007-2010
-- BMI Methodology
-- How We Generate Our Industry Forecasts
-- Cross Checks
-- Country Snapshot: Malaysia Demographic Data
-- Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030
-- Section 2: Education And Healthcare
Table: Education, 2000-2003
Table: Vital Statistics, 2005-2030
-- Section 3: Labour Market And Spending Power
Table: Employment Indicators, 2001-2006
Table: Consumer Expenditure, 2000-2012 (US$)
Table: Average Annual Manufacturing Wages, 2000-2012

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