Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
Iron ore price at all time high in May n June ( after I check the graph), this explain why Eastern steel posted very good quarterly profit in latest quarter, high iron ores prices n also its iron billets n slabs … next quarter, iron ores price has dropped 40%-45% , may mean iron billets n slabs also dropping 30% or more but as long as Eastern steel can provide 30 mil to Hiap teck per quarter, good enough to push the PAT of Hiap teck to RM170-180 mil n above per year…
hi Kevin Tam, when iro ore price go lower this mean the raw material is cheaper, the steel billet & rebar still at higher prices thus the profit margin will getting higher.
Not that simple, u need to figure out whether iron ore at low price for more than 2-3 weeks , iron billets at Asia continue to maintain old price ( very high price ) or being adjusted down in Oct…. It just like some analysts think China steel products price will continue at high prices even iron ore has dropped 40-48% since 3-4 weeks ago , I think unlikely … steel products of China n iron billets will drop at least 20-25% in next month or near future …at the same time , North America is facing shortage of steels …