Malaysian wire rod market runs slowly
2015-07-29 08:39:14 [Print]
BEIJING (Asian Metal) 29 Jul 15 - The wire rod market in Malaysia continues to perform inactively after the Ramadan, influenced by the stagnant demand from downstream consumers and the brunt of imported low-cost materials. Insiders do not think the price of wire rod in Malaysia will rebound in the short term.
A middle-sized wire rod trader in Perak reported that the price of wire rod SAE1008 Φ6.5mm from local mills is MYR1,650/t (USD433/t) with GST excluded, the same as that of last week.
According to the source, participants had a one-week or two-week holiday after the Ramadan and they came back to the market just now, so the demand from downstream consumers remains very weak at the moment. His sales volume is predicted to be around 500 tons in July, less than the regular level of 700 tons per month before the Ramadan. He does not think the price will rebound in August when it is the traditional off-season for wire rod’s consumption.
A wire rod producer with a monthly output of 10,000 tons in Selangor said the current price of wire rod SAE1008 Φ6.5mm is MYR1,630/t (USD427/t) with GST excluded, unchanged compared with that of last week.
As he explains, the output of this steel mill has been cut by 90% since January of this year. “The demand from local market shrank fast in past several months and prices of imported materials were much lower than local materials,” he says, adding that the mill had to cut production to reduce losses influenced by shortage of orders. He states that the price of imported wire rod from China is around MYR70-100/t (USD18-26/t) lower than that of local materials. The source confirms that the mill’s production lines will not be in operation with full capacity in the near future.
A middle-sized wire rod trader in Perak reported that the price of wire rod SAE1008 Φ6.5mm from local mills is MYR1,650/t (USD433/t) with GST excluded, the same as that of last week.
According to the source, participants had a one-week or two-week holiday after the Ramadan and they came back to the market just now, so the demand from downstream consumers remains very weak at the moment. His sales volume is predicted to be around 500 tons in July, less than the regular level of 700 tons per month before the Ramadan. He does not think the price will rebound in August when it is the traditional off-season for wire rod’s consumption.
A wire rod producer with a monthly output of 10,000 tons in Selangor said the current price of wire rod SAE1008 Φ6.5mm is MYR1,630/t (USD427/t) with GST excluded, unchanged compared with that of last week.
As he explains, the output of this steel mill has been cut by 90% since January of this year. “The demand from local market shrank fast in past several months and prices of imported materials were much lower than local materials,” he says, adding that the mill had to cut production to reduce losses influenced by shortage of orders. He states that the price of imported wire rod from China is around MYR70-100/t (USD18-26/t) lower than that of local materials. The source confirms that the mill’s production lines will not be in operation with full capacity in the near future.
