In 2018, Singapore’s two largest reinforcing steel fabricators merged into one. BRC Asia spent S$200 million to acquire its rival, Lee Metal Group. The market noted this as a consolidation play. Analysts wrote it off and investors moved on. But most people missed what the real deal was. Because overnight, BRC Asia became the dominant force in Singapore’s strong steel market. Prior to the acquisition, Singapore’s strong steel market was fragmented and price-destroying. Many fabricators are competing aggressively, outselling each other, and keeping margins low for everyone involved. After the acquisition, two players remained. The race to the bottom is over. Pricing discipline took its place. and BRC Asia emerged largely controlled 60% of domestic market. These two players became the only two companies able to deliver HDB projects nationally without any disruption. HDB builds thousands of flats every year on a non-negotiable schedule. Can’t stand it…
