Malaysian wire rod price goes up
2013-08-22 08:54:32 [Print]
BEIJING (Asian Metal) 22 Aug 13 - The price of wire rod in Malaysia increases due to the depreciation of Malaysian Ringgit and the higher export price from China. The current price of wire rod SAE1008 Φ5.5mm from local mills is MYR2,100-2,150/t (USD635-655/t). Insiders predict that the price is likely to go up further next week.
A hard drawn wire producer in Johore reported that the current price of wire rod SAE1008 Φ5.5mm from local mills is MYR2,150/t (USD655/t), up by MYR60/t compared with that of early this month.
The source said mills such as Amsteel and Southern Steel lifted ex-works prices of wire rod by MYR60/t last Friday, traders in the market followed suit. According to him, the Malaysian Ringgit has been decreasing for some days and the exchange rate between US dollar and Ringgit is 1:3.28 while it was 1:3-1:3.1 last month. Therefore, producers are quite active in raising ex-works prices. The source usually purchases 400-500t per month to produce cold drawn wires, but now he does not have any stocks because his new factory is to restart the operation in middle-September. He thought the wire rod price is likely to go up further next month.
Another wire rod purchaser in Perak said that the current price of wire rod SAE1008 Φ5.5mm from local mills is MYR2,120/t (USD643/t), up by MYR60/t compared with that of early last week.
He confirmed that it is a higher ex-works price that encourages the local market price. Besides the depreciation of Malaysian Ringgit, he attributes the markup to higher export prices from other regions like China and Taiwan. The current export price of wire rod from China increases by USD3-20/t to USD538-555/t FOB main ports in North China, and Malaysian government will carry out the new policy of Application Permission for import on August 22nd, which means there will be less materials imported from China. Therefore, he also believed that the wire rod price in Malaysia will increase further next week.
A hard drawn wire producer in Johore reported that the current price of wire rod SAE1008 Φ5.5mm from local mills is MYR2,150/t (USD655/t), up by MYR60/t compared with that of early this month.
The source said mills such as Amsteel and Southern Steel lifted ex-works prices of wire rod by MYR60/t last Friday, traders in the market followed suit. According to him, the Malaysian Ringgit has been decreasing for some days and the exchange rate between US dollar and Ringgit is 1:3.28 while it was 1:3-1:3.1 last month. Therefore, producers are quite active in raising ex-works prices. The source usually purchases 400-500t per month to produce cold drawn wires, but now he does not have any stocks because his new factory is to restart the operation in middle-September. He thought the wire rod price is likely to go up further next month.
Another wire rod purchaser in Perak said that the current price of wire rod SAE1008 Φ5.5mm from local mills is MYR2,120/t (USD643/t), up by MYR60/t compared with that of early last week.
He confirmed that it is a higher ex-works price that encourages the local market price. Besides the depreciation of Malaysian Ringgit, he attributes the markup to higher export prices from other regions like China and Taiwan. The current export price of wire rod from China increases by USD3-20/t to USD538-555/t FOB main ports in North China, and Malaysian government will carry out the new policy of Application Permission for import on August 22nd, which means there will be less materials imported from China. Therefore, he also believed that the wire rod price in Malaysia will increase further next week.
