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Mycron operates in both the midstream and downstream segments of the steel value chain, supplying Cold Rolled Coil (CRC) products, steel tubes, and related steel items to domestic and international markets.
Over the past six years, CRC has consistently contributed the largest share of revenue but has shown greater earnings volatility. In contrast, the steel tube segment has provided more stable profitability, particularly during downturns in the CRC business.
The Group was profitable in only three of the past six years, with earnings closely tied to favourable pricing and volume dynamics:
• In 2021 and 2022, profits peaked alongside the global steel price cycle, driven by elevated selling prices and strong gross margins.
• In 2024, despite gross margins being about half of those in 2021–2022, profit rebounded due to a 50% surge in sales - largely from export-driven growth in CRC. Mycron capitalised on trade disruptions, particularly benefiting from CPTPP market access as competitors like China and Vietnam faced tariff barriers.
If Mycron sustains its export momentum, especially in CRC, its performance in the next steel price cycle could surpass that of the last, enhancing its turnaround prospects.
If you want to understand more about the impact of the steel price on other Bursa flat steel companies, join me this at this Thursday podcast