CSC Steel Holdings Bhd’s profit after tax (PAT) rose 5.5% to RM32.02 million for the first half of FY26 (1H26), from RM30.37 million a year earlier, as lower production costs more than offset pressure from weaker average selling prices.
Revenue for the six-month period increased 3.1% to RM713.43 million from RM692.09 million, supported by overall sales volume growth of between 8% and 12%.
The group said the improvement in profitability was mainly driven by a reduction in unit production costs, helped by a stronger ringgit which lowered raw material procurement expenses.
For the second quarter, PAT increased 3.9% to RM18.46 million from RM17.77 million, while revenue rose 1.3% to RM368.18 million from RM363.5 million.
CSC Steel said the higher sales volume helped cushion the impact of lower selling prices during the period.
Looking ahead, the group expects the global steel market to remain challenging in 2H26 amid persistent overcapacity, shifting trade policies and geopolitical uncertainty.
It noted that subdued demand in China’s property sector and elevated Chinese steel exports is likely to continue intensifying competition in international markets.
In Malaysia, however, continued public infrastructure spending, industrial expansion and investment in high-value manufacturing are expected to provide support for domestic steel demand.
CSC Steel said it will continue to focus on operational efficiency, cost optimisation and disciplined inventory management, while strengthening its competitiveness through decarbonisation initiatives, energy-efficiency improvements and higher value-added steel products.
