Indonesian wire rod market sees no improvement
2016-01-14 09:17:54 [Print]
BEIJING (Asian Metal) 14 Jan 16 - The wire rod market in Indonesia continued to perform slowly after the long holiday from December 25, 2015 to January 3, 2016 as there was little activity before and after the holiday. The current price of wire rod SAE1008 Φ5.5mm is IDR5,100,000-5,200,000/t (USD368-375/t) VAT included, down by IDR300,000/t (USD22/t) compared with that of a month ago. As the demand from downstream consumers remains very weak, insiders predict the price has no chances to rebound in the near future.
A wire rod trader in Surabaya reported that the current price of SAE1008 Φ5.5mm is IDR5,100,000/t (USD368/t) VAT included, down by IDR300,000/t (USD22/t) compared with that of a month ago. The source reveals that participants had many holidays during the past month, so the market performance had no improvement during that time. His sold 400 tons of wire rods in December, down by 100 tons compared with that in November. However, the source reveals that his sales volume could reach 1,000-2,000 tons in H1 of 2015.
With an inventory of 1,200 tons in hand, the source shows little optimism for the market outlook as the demand from mesh manufactures and constructional projects will not become strong in the short term.
A wire rod trader in Jakarta reported to Asian Metal that the current price of wire rod SAE1008 Φ5.5mm is IDR5,200,000/t (USD375/t) VAT included, falling by IDR300,000/t (USD22/t) compared with that of a month ago. “It is usual that we do not conclude a deal within one trading day,” he says, adding that many traders are faced with heavy capital pressure as they failed to get profits in the business in 2015. As a consequence, traders are eager to promote sales. The source reveals that if customers place firm orders, he can cut prices by around IDR50,000-80,000/t (USD4-6/t) to promote sales.
Holding an inventory of 1,500 tons in hand, the source reveals that it is enough for customers’ consumption in coming two months. He is not eager to replenish his stocks in the short term. He sold 700 tons in December, 2015, while the sales volume could reach 1,000 tons per month in Q3 of last year. “The market performance weakened in past months in line with prices falling down continuously,” he says, adding that prices of wire rod in local market witnessed a total mark-down of about IDR1,200,000/t (USD86/t) in past four months.
A wire rod trader in Surabaya reported that the current price of SAE1008 Φ5.5mm is IDR5,100,000/t (USD368/t) VAT included, down by IDR300,000/t (USD22/t) compared with that of a month ago. The source reveals that participants had many holidays during the past month, so the market performance had no improvement during that time. His sold 400 tons of wire rods in December, down by 100 tons compared with that in November. However, the source reveals that his sales volume could reach 1,000-2,000 tons in H1 of 2015.
With an inventory of 1,200 tons in hand, the source shows little optimism for the market outlook as the demand from mesh manufactures and constructional projects will not become strong in the short term.
A wire rod trader in Jakarta reported to Asian Metal that the current price of wire rod SAE1008 Φ5.5mm is IDR5,200,000/t (USD375/t) VAT included, falling by IDR300,000/t (USD22/t) compared with that of a month ago. “It is usual that we do not conclude a deal within one trading day,” he says, adding that many traders are faced with heavy capital pressure as they failed to get profits in the business in 2015. As a consequence, traders are eager to promote sales. The source reveals that if customers place firm orders, he can cut prices by around IDR50,000-80,000/t (USD4-6/t) to promote sales.
Holding an inventory of 1,500 tons in hand, the source reveals that it is enough for customers’ consumption in coming two months. He is not eager to replenish his stocks in the short term. He sold 700 tons in December, 2015, while the sales volume could reach 1,000 tons per month in Q3 of last year. “The market performance weakened in past months in line with prices falling down continuously,” he says, adding that prices of wire rod in local market witnessed a total mark-down of about IDR1,200,000/t (USD86/t) in past four months.
