Malaysian wire rod market sees no improvement
2015-08-07 09:30:25 [Print]
BEIJING (Asian Metal) 7 Aug 15 - The wire rod market in Malaysia performs slowly at the moment, as the demand from downstream consumers shrank fast in the past month. Insiders predict that the price of wire rod in Malaysia will come down in the short term.
A trader from a large-sized company in Selongar reported that the price of wire rod SAE1008 Φ6.5mm from local mills is MYR1,600/t (USD410/t) with GST excluded, falling by MYR30/t (USD8/t) compared with that of last week.
According to the source, traders are eager to conclude deals at the moment and they can accept count-offers lower than their quotations as long as customers have firm orders. “In the Q1 of this year, I only offered a discount when customers purchase 300-500 tons at a time, and sometimes when they place an order of more than 1,000 tons, but now I offer the lowest price when customers purchase 30 tons at a time,” he says, showing little optimism for the coming market.
A trader from a small-sized company in Selangor said the current price of wire rod SAE1008 Φ6.5mm from local steel mills is MYR1,630/t (USD417/t) with GST excluded, falling by MYR20/t (USD5/t) compared with that of last week.
As he explains, there were some political issues in Malaysia in past two months. The economic situation was not stable with MYR depreciating for the time being. “Participants show little optimism for the coming market and downstream consumers are not active in placing orders at the moment,” he says, adding that his sales volume was around 20tpd in July, decreasing by 40% compared with that in May and June. He does not think the wire rod market will see improvement in August.
A trader from a large-sized company in Selongar reported that the price of wire rod SAE1008 Φ6.5mm from local mills is MYR1,600/t (USD410/t) with GST excluded, falling by MYR30/t (USD8/t) compared with that of last week.
According to the source, traders are eager to conclude deals at the moment and they can accept count-offers lower than their quotations as long as customers have firm orders. “In the Q1 of this year, I only offered a discount when customers purchase 300-500 tons at a time, and sometimes when they place an order of more than 1,000 tons, but now I offer the lowest price when customers purchase 30 tons at a time,” he says, showing little optimism for the coming market.
A trader from a small-sized company in Selangor said the current price of wire rod SAE1008 Φ6.5mm from local steel mills is MYR1,630/t (USD417/t) with GST excluded, falling by MYR20/t (USD5/t) compared with that of last week.
As he explains, there were some political issues in Malaysia in past two months. The economic situation was not stable with MYR depreciating for the time being. “Participants show little optimism for the coming market and downstream consumers are not active in placing orders at the moment,” he says, adding that his sales volume was around 20tpd in July, decreasing by 40% compared with that in May and June. He does not think the wire rod market will see improvement in August.
