Annual Report (Complete) - MYCRON Steel Berhad

Chairman’s Statement
(continued)
PROSPECTS FOR THE NEW FINANCIAL YEAR (continued)
Steel prices have begun to soften, since the end of the financial year to 30 June 2010, due primarily to market corrections and seasonal
slowdowns. The threat of overproduction by steel mills in China, which could flood the international market, with cheap steel, has always
been a possibility, and has dampened the rise in steel price and demand.
The steel industry has historically been cyclical and highly sensitive to global economic conditions, as well as the volatility of raw
material price, such as iron-ore and coking-coal. In view of this, the Group will continue to remain focused, and is prepared to exercise
operational flexibility, in the face of any volatile situation.
The Group will continue to closely monitor, the global and domestic steel demand patterns, and will maintain its cautious inventory
management policy, of only purchasing HRC raw materials, to match direct customer CRC committed and projected orders.
ACKNOWLEDGEMENT
On behalf of the Board, I would like to express my gratitude to our shareholders, customers, suppliers, business partners and staff for their
continued support, and I look forward to many successful years ahead, as one family, under the Mycron Steel brand name.
Tunku Dato’ Ya’acob bin Tunku Tan Sri Abdullah
Chairman
pg 7 | Mycron Steel Berhad