SINGAPORE (Aug 29): Hup Steel saw FY16 losses widen by 140% to $19.1 million from $7.9 million a year ago due to fierce competition and weak market demand that led the group to further write down affected stock items to net realisable value and increase provisions for slow moving items. These amounted to $10.6 million for FY16.
Revenue dropped 33% to $56.4 million as demand for steel products continued to weaken throughout FY16, resulting in price competition among suppliers.
Looking ahead, the company expects demand for steel products to remain soft in the next few quarters given the weak activity level in the marine and oil &gas sectors.
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