According to Datuk Lim Hong Thye, head of the Malaysian Iron & Steel Industry Federation, Malaysian steel mills would likely continue to be more competitive than their regional counterparts even after the next power surcharge review at the end of this month (MISIF).
"We must wait to see what the administration will declare before making any assumptions. However, in general, industry participants have been discussing the need to strive for our own efficiency, the necessity to reduce power use, "After releasing Misif's 14th report on the state and prospects of the Malaysian iron and steel industry, he told reporters.
Energy and raw material costs, which together accounted for about 90% of total expenses, are two important factors in the cost structure of upstream steel companies, according to Lim, who is also the managing director of Ann Joo Resources Bhd.
"As long as the assessment is consistent with the global trend, Malaysian steel mills are not worse off than our competitors in the area since we have seen a decrease in coal costs since, say, two and a half months ago. I think the majority of us are capable of maintaining our exports and production levels "said he.
On the basis of rising coal and gas costs that have impacted the global energy supply business, including Malaysia, the government is expected to conduct its bi-annual review of the electricity tariff surcharge for H2 2022 by the end of June.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.
