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According to its third-quarter financial report released in November, Malaysian steel manufacturers are optimistic about the domestic market, despite the potential increase in costs due to the impending carbon tax. B30P105-LM oriented electrical steel, Malaysia plans to introduce the carbon tax in 2026, aiming to create a level playing field for green, low-carbon steel manufacturers. The tax revenue will be used to establish a carbon competitiveness fund for steel companies.
Both CSC Steel Holdings Bhd and Choo Bee Metal Industries Bhd pointed to rising costs associated with the carbon tax, which will be implemented in 2026 as part of the Steel Industry Roadmap 2035. B30P105-LM oriented electrical steel, CSC stated on November 14th that the new tax is "balanced by strong government support for infrastructure development and industrial decarbonization." Choo Bee, on November 20th, stated that the carbon tax will "promote energy efficiency improvements and reshape the competitiveness of Malaysia's steel industry."
The CEO of the Malaysian Steel Association recently stated that it is too early to judge the impact of carbon taxes on the domestic steel industry, and that it is necessary to observe the situation next year. Even countries that have implemented carbon taxes need several years to ensure that the system is perfected and to make up for any deficiencies.
Amid concerns about a carbon tax, other steel companies remain cautious about the overall market. Southern Steel Bhd noted on November 26 that domestic demand is moderate, mainly supported by projects under construction, but high raw material costs and competitive pricing pressures continue to weigh on the market. B30P105-LM oriented electrical steel, The company expressed optimism that the roadmap will stabilize the industry, stating that "the roadmap demonstrates the government's firm commitment to revitalizing the steel industry and reaffirming its strategic importance."
Furthermore, Lysaght Galvanized Steel Bhd warned on November 13 that it would continue to face challenges in the following quarters due to currency fluctuations, a global economic slowdown, and product competition. ASTEEL Group, on the other hand, issued a "cautiously optimistic" outlook on November 7, believing that regional infrastructure spending and supply adjustments are likely to provide support for steel prices in the short term.
