Posted on 17 Jun 2015
"However, the Group was able to maintain sales of certain steel products at competitive prices," he said in a statement after the company's Annual General Meeting on Wednesday.
He said FY14 was much more challenging as the Group recorded a loss before tax of RM27.02 million, compared with profit before tax of RM38.73 million recorded previously.
Chen said the imbalance in demand and supply globally, especially the huge export from the world's biggest steel production hub, China, had caused steel prices to buckle and fall drastically.
"The slow growth pace of the main global economies such as the United States and China also had a significant impact on the sluggish steel market," he added.
According to Chen, weak market sentiment and rising inflow of low-priced imports into Malaysia, had adversely affected the operations of local steel manufacturers.
In response to the uncertainties in the steel market, especially the domestic segment, the Group has adjusted production volume and product mix accordingly to minimise losses when steel prices become depressed.
"The steel market sentiment in 2015 is expected to be similar to last year as result of the continued imbalance in supply and demand globally," he said.
CSC Steel Holdings, formerly known as Ornasteel Holdings Bhd, was incorporated in Malaysia on Jan 20, 2004.
