Malaysia's steel maker and trader Ann Joo Resources Bhd expects bullish outlook for 2010 and 2011, given the massive funds pumped into the country's infrastructure sector.

Demand for steel was expected to pick up in the second half of 2010 or early 2011, Ann Joo's group executive chairman Lim Kiam Lam told reporters on Tuesday after the company's annual general meeting.

He also said that the tight supply of construction steel and the demand-pull price upswing were expected in the medium term.

According to Lim, the urbanization and industrialization in emerging markets and developing countries were expected to increase steel demand, possibly exceeding the pre-crisis level in 2007.

Lim said that the company expected the main export market to contribute 50 percent to its revenue and the rest from domestic market.

To cater for the increasing demand, Lim said the company planned to raise its current capacity from the current 800,000 tons a year to 1.5 million tons.

Aiming to be among the biggest company in South East Asia, Lim said that the company, whose main focus was within the ASEAN market, planned to acquire companies to provide synergy to the group.

Ann Joo recorded a pre-tax profit of 46.38 million ringgit (14. 27 million U.S. dollars) in the first quarter of 2010, compared to a pre-tax loss of 41.12 million ringgit (12.65 million U.S. dollars) a year ago.