KUALA LUMPUR (Nov 22): CSC Steel Holdings Bhd (KL:CSCSTEL) said on Friday its third quarter net profit fell 21% from a year earlier though the company is optimistic of rising prices and demand for steel ahead.

Net profit for the three months ended Sept 30, 2024 (3QFY2024) was RM6.87 million compared to RM8.35 million in 3QFY2023, CSC Steel said in an exchange filing. The company attributed the lower profit to competitive pressure from “unfair trade practices” and overcapacity among other challenges in the third quarter.

Revenue for the quarter was only 0.2% higher year-on-year at RM404.89 million. The company did not declare any dividend for the quarter.

In the final quarter of 2024, interest rate cuts in the US and China are expected to “significantly boost steel demand and potentially raise steel prices”, said CSC Steel. “As the traditional peak season approaches, market conditions are forecast to improve.”

In Malaysia, CSC Steel expects demand to “stabilise, buoyed by a recovering construction sector and the potential launch of new infrastructure projects” though the Taiwanese-controlled company flagged concerns over ongoing issues such as “unfair” imports.

For the first nine months of the year, the company reported a 41% decline in net profit to RM22.81 million while revenue dipped 0.8% year-on-year to RM1.17 billion compared with RM1.18 billion in the corresponding period.

The results were mainly due to weaker steel prices, which have been affected by increased competition from lower-priced imports following the expiration of anti-dumping duties.

CSC Steel’s shares closed unchanged at RM1.19 on Friday with a market capitalisation of RM452 million.