Malaysian wire rod price up but market slow
2014-01-06 09:32:05 [Print]
BEIJING (Asian Metal) 6 Jan 14 - The price of wire rod in Malaysia moves up encouraged by higher ex-works prices, but the market is still dull and buyers are not active in placing orders. The current price of SAE1008 Φ5.5-10mm from local mills is MYR2,100-2,150/t (USD639-654/t). Insiders predict that the price will remain stable in the coming week.
A wire rod purchaser in Johore reported that the current price of wire rod SAE1008 Φ5.5mm from mills in Malaysia is MYR2,100/t (USD639/t), up by MYR50/t compared with that of last week.
The source said steel mills lifted ex-works prices of wire rod at the end of December because of an 18.8% increase for electricity price from January 1. However, most buyers are not eager to purchase materials because they do not believe the price will remain high for long under the pressure of imported wire rod from China. “The current selling price of wire rod with above-mentioned grade imported from China is only around MYR2,000/t (USD609/t), much lower than the local one, so I think mills here may cut prices again,” he said. Revealing a monthly purchasing volume of 200-300t and a current stock of 200t, the source does not plan to build large stocks before the Spring Festival (January 31).
Another wire rod purchaser in Perak said his current purchase price of wire rod SAE1008 Φ5.5mm from local mills is MYR2,150/t (USD654/t), MYR50/t higher than that of late December.
The source also attributed the price hike to higher ex-works prices, but he complained that the market is as slow as before at the meantime. For one thing, it is the rainy season in Malaysia and the operation of many construction projects is slower, so the demand for wire rod is weaker. For another, the Chinese export price of wire rod decreased by USD5-8/t to USD515-520/t FOB main ports in North China recently, which will definitely influence the market price in Malaysia. With a monthly purchasing volume of 200t of wire rod to produce cold drawn wire, the source predicted that the price of wire rod in Malaysia is unlikely to go up further in the near future.
A wire rod purchaser in Johore reported that the current price of wire rod SAE1008 Φ5.5mm from mills in Malaysia is MYR2,100/t (USD639/t), up by MYR50/t compared with that of last week.
The source said steel mills lifted ex-works prices of wire rod at the end of December because of an 18.8% increase for electricity price from January 1. However, most buyers are not eager to purchase materials because they do not believe the price will remain high for long under the pressure of imported wire rod from China. “The current selling price of wire rod with above-mentioned grade imported from China is only around MYR2,000/t (USD609/t), much lower than the local one, so I think mills here may cut prices again,” he said. Revealing a monthly purchasing volume of 200-300t and a current stock of 200t, the source does not plan to build large stocks before the Spring Festival (January 31).
Another wire rod purchaser in Perak said his current purchase price of wire rod SAE1008 Φ5.5mm from local mills is MYR2,150/t (USD654/t), MYR50/t higher than that of late December.
The source also attributed the price hike to higher ex-works prices, but he complained that the market is as slow as before at the meantime. For one thing, it is the rainy season in Malaysia and the operation of many construction projects is slower, so the demand for wire rod is weaker. For another, the Chinese export price of wire rod decreased by USD5-8/t to USD515-520/t FOB main ports in North China recently, which will definitely influence the market price in Malaysia. With a monthly purchasing volume of 200t of wire rod to produce cold drawn wire, the source predicted that the price of wire rod in Malaysia is unlikely to go up further in the near future.
