KUALA LUMPUR (March 2): Those who are familiar with the steel industry would know that blast furnaces operate continuously for long periods because they are difficult to start up and shut down.

In July last year, nearly three years after the suspension of operations in Kemaman, Terengganu to minimise losses, Eastern Steel Sdn Bhd — the sole producer of steel slabs in Malaysia — decided that it was time to reignite its 600 cu m blast furnace again.

Some industry observers see this as an early positive sign that brighter days are ahead for Malaysian steel companies -- at least for the upstream players.

While certain product segments in the sector were able to gradually return to a normalised market as a result of China’s rationalisation efforts, it also prompted an increase in outward investment drive by the Chinese steelmakers.

However, while the general outlook has improved, various issues remain for industry players.

Read more about the challenges and issues facing steelmakers in the latest issue of The Edge.

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