Leader Steel Holdings Bhd will focus less on iron ore trading, as the global pricing of the steel-making commodity has decreased since the middle of 2013.

Group managing director Datin Tan Pak Say said the iron ore trading segment would contribute less to group revenue this year, compared with about 40% a year ago.

“We will trade more manganese, copper ore and other minerals instead as their prices are more stable.

“We source our minerals locally and regionally, and sell to China, Vietnam and South-East Asia,” she told StarBiz.

Iron ore prices are currently priced at US$70 (RM233) per tonne, compared with US$130 per tonne a year ago.

On the group’s steel pipe-manufacturing activities, Tan said the recent anti-dumping duties imposed on hot and cold rolled coil from Indonesia, China and South Korea might raise the selling price of local hot and cold rolled coil.

“We hope the local producers of hot and cold rolled coil will not raise prices, as that will erode the competitive edge of the local steel-based product manufacturers.

“Local steel-based manufacturers buy our steel pipes. If they are not competitive in the international market, our sales would also be affected,” she added.

The current prices of hot and cold rolled coil range between US$550 and US$650 per tonne, depending on where the products are sourced.

Hot rolled coil is used for making structural steel, while cold rolled coil is used for furniture products.

Leader Steel expected its customers to stock up their steel pipe inventory soon, as the goods and services tax would be imposed on steel pipes next April.

“So far, we have seen very little buying,” she added.

Tan said it was possible to chart a market trend a couple of years ago, to forecast monthly sales of its steel pipes.

“But nowadays, it is getting increasingly difficult to do so, due to overseas market conditions and demand for furniture products,” she said.

• [Editor:Sophie]