Malaysian seamless pipe market quiet
2015-08-27 08:45:15 [Print]
BEIJING (Asian Metal) 27 Aug 15 - The seamless pipe market continues to run inactively in Malaysia this week because of the insufficient demand, while the price does not go down due to the depreciation of Ringgit. Currently the prevailing price of ASTM A106 GRB Φ114.3mm*6.02mm imported from China is MYR2,080-2,100/t (USD491-495/t). Insiders do not think the price will change in the near future.
A trader in Selangor tells Asian Metal that his quotation for ASTM A106 GRB Φ114.3mm*6.02mm imported from China is MYR2,080/t (USD491/t) 6% GST excluded, the same as last week.
According to the source, both the market and the price run steadily at the moment. With a projected sales volume of 50t per month, he estimates it will be 20t in August. Noted by him, though the market performance remains unsatisfying and most traders show no confidence in the market outlook, they do not plan to cut quotations in the near future in view of the depreciation of Ringgit against U.S. dollar. He explains that as there is no seamless pipe mill in Malaysia, they mainly import from China, Japan and South Korea, and thus the exchange currency between Ringgit and U.S. dollar plays a key role on the price adjustment.
Another trader also in Selangor offers MYR2,100/t (USD495/t) 6% GST exclude for ASTM A106 GRB Φ114.3mm*6.02mm imported from China, equaling to last week.
Attributing the flat price to the contradiction between the weakening demand but rising purchase cost, the source complains that there are few construction projects under progress with the absence of stimulant policies, and it is hard for the demand for seamless pipe to get strong. He did not sell any products this week to date, while the daily sales volume is 10t when the market is prosperous. Meanwhile, the exchange rate between Ringgit and U.S. dollar has dropped to 4.2:1 by Wednesday and he deems it is likely to hit 4.5:1 in the near future, which means purchase cost increases and restrains the price from decreasing.
A trader in Selangor tells Asian Metal that his quotation for ASTM A106 GRB Φ114.3mm*6.02mm imported from China is MYR2,080/t (USD491/t) 6% GST excluded, the same as last week.
According to the source, both the market and the price run steadily at the moment. With a projected sales volume of 50t per month, he estimates it will be 20t in August. Noted by him, though the market performance remains unsatisfying and most traders show no confidence in the market outlook, they do not plan to cut quotations in the near future in view of the depreciation of Ringgit against U.S. dollar. He explains that as there is no seamless pipe mill in Malaysia, they mainly import from China, Japan and South Korea, and thus the exchange currency between Ringgit and U.S. dollar plays a key role on the price adjustment.
Another trader also in Selangor offers MYR2,100/t (USD495/t) 6% GST exclude for ASTM A106 GRB Φ114.3mm*6.02mm imported from China, equaling to last week.
Attributing the flat price to the contradiction between the weakening demand but rising purchase cost, the source complains that there are few construction projects under progress with the absence of stimulant policies, and it is hard for the demand for seamless pipe to get strong. He did not sell any products this week to date, while the daily sales volume is 10t when the market is prosperous. Meanwhile, the exchange rate between Ringgit and U.S. dollar has dropped to 4.2:1 by Wednesday and he deems it is likely to hit 4.5:1 in the near future, which means purchase cost increases and restrains the price from decreasing.
