Malaysian wire rod prices drop
2023-04-26 08:25:30 [Print]
BEIJING (Asian Metal) 26 Apr 23 - Malaysian wire rod prices went down this week discouraged by rising supply from import and bearish sentiments from market participants. The current mainstream prices of wire rod SAE1012 Φ6.5mm stand at MYR2,900-2,950/t (USD653-664/t), down by around MYR100/t (USD23/t) from late last week. Due to slow market performance, insiders predict wire rod prices in Malaysia would edge down further in the coming week.
A producer in West Malaysia asked MYR3,000/t (USD675/t) for wire rod SAE1012 Φ6.5mm this Tuesday and could accept bids no less than MYR2,950/t (USD664/t). "I did not close deals so far this week and last sold nearly 200t of the material at MYR3,100/t (USD698/t) late last week," he revealed, adding that imported wire rod from South Asia fell by around USD10/t to USD605/t CFR Malaysia this week, which brought much pressure to them. As there would be more imported materials arriving in ports in May, most buyers preferred to wait for lower offers. In his opinion, the price of wire rod would fall further in the coming week.
Reporting an annual production capacity of 350,000t for wire rod, the company recorded an output of roughly 60,000t of the material in the Q1 of this year, against almost 250,000t in 2022. Its output would reach nearly 13,000t in April, similar to March.
A consumer in West Malaysia got an offer of MYR2,950/t (USD664/t) for wire rod SAE1012 Φ6.5mm this Tuesday and he could buy at MYR2,900/t (USD653/t) with purchasing volume of around 200t. "My supplier insisted on MYR3,000/t (USD675/t) for the same purchasing amount late last week," he stated, adding that he preferred to reduce stocks when prices continued on the decline. Now he has an inventory of nearly 800t, while the regular level should be about 1,000t. Seeing few buying activities, he is of the opinion that wire rod prices would decline further in the coming week.
The company owns an annual consumption capacity of 25,000t for wire rod and used approximately 2,800t of the material in the Q1 of this year, against 15,000t in 2022. Its consumption amount would reach about 700t in April, down from 800t in March.
A producer in West Malaysia asked MYR3,000/t (USD675/t) for wire rod SAE1012 Φ6.5mm this Tuesday and could accept bids no less than MYR2,950/t (USD664/t). "I did not close deals so far this week and last sold nearly 200t of the material at MYR3,100/t (USD698/t) late last week," he revealed, adding that imported wire rod from South Asia fell by around USD10/t to USD605/t CFR Malaysia this week, which brought much pressure to them. As there would be more imported materials arriving in ports in May, most buyers preferred to wait for lower offers. In his opinion, the price of wire rod would fall further in the coming week.
Reporting an annual production capacity of 350,000t for wire rod, the company recorded an output of roughly 60,000t of the material in the Q1 of this year, against almost 250,000t in 2022. Its output would reach nearly 13,000t in April, similar to March.
A consumer in West Malaysia got an offer of MYR2,950/t (USD664/t) for wire rod SAE1012 Φ6.5mm this Tuesday and he could buy at MYR2,900/t (USD653/t) with purchasing volume of around 200t. "My supplier insisted on MYR3,000/t (USD675/t) for the same purchasing amount late last week," he stated, adding that he preferred to reduce stocks when prices continued on the decline. Now he has an inventory of nearly 800t, while the regular level should be about 1,000t. Seeing few buying activities, he is of the opinion that wire rod prices would decline further in the coming week.
The company owns an annual consumption capacity of 25,000t for wire rod and used approximately 2,800t of the material in the Q1 of this year, against 15,000t in 2022. Its consumption amount would reach about 700t in April, down from 800t in March.
