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Malaysian energy cost hike to impact domestic industries
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It is reported that Malaysia's hike in its electricity tariff and gas costs will impact the domestic steel, cement and glove manufacturing sectors.
According to HwangDBS Vickers Research, the full year estimated earnings of steel makers Southern Steel Bhd and Kinsteel Bhd may decrease between 17% and 25% because of the hike.
Some researchers found that electricity accounted for 8% to 18% of total costs for the steel and cement producers.
According to a report of OSK Research that the initial 10% increase in electricity tariff was another hit for steel mills, which have been suffering from shrinking profit margins due to surging raw material costs as well as the sluggish steel demand worldwide.
News Date
5/29/2012 8:58:32 AM
reported by
Ren Jhuang
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