Malaysian HRC market slow
2023-03-16 08:17:41 [Print]
BEIJING (Asian Metal) 16 Mar 23 - Though traders lifted prices further early this week, the HRC market ran slowly in Malaysia as end users showed resistance towards the continuous price increases. Presently, the prevailing prices of HRC SS400 3.0mm*1,250mm*C hover at MYR3,400-3,500/t (USD758-781/t) D/P in warehouse Kuala Lumpur, the same as Tuesday. Insiders foresee flat prices of HRC in the upcoming several days seeing the rising prices from overseas suppliers but the dim market.
"End users show resistance towards the continuous price increases and hold back from purchasing. We did not close any deals in recent two weeks, just several inquiries, and buyers even refuse to give ideal purchasing prices after getting our offers. We tried to contact with several clients early this week, but none of them showed intention in purchasing, and we last sold 200t at MYR3,300/t (USD736/t) at the end of February," disclosed a local trader, offering MYRR3,400/t (USD758/t) without concession for HRC SS400 3.0mm*1,250mm*C. Meanwhile, the trader pointed out that benefited from the booming exports to Europe and the USA, mills in Asia lifted HRC export prices continuously, with the markup of USD10-30/t in recent one week. Therefore, he does not plan to move down prices and predicts stable prices of HRC in the coming several days.
The trader might just sell 3,000t in March, down from 10,000t in February. With the typical monthly sales volume of 5,000t, the trader estimates that the sales volume would reach 17,000t in the first quarter of 2023, against 51,000t in 2022. He does not hold any stock at present.
"The market calmed down gradually this month after the short-term boom in February. End users turn to purchase cautiously seeing the rising prices of HRC but insufficient orders for final products. On Wednesday, a regular buyer bought 20t at MYR3,400/t (USD758/t), while he at least bought 30t at one single time in February," noted the trader, quoting MYR3,400/t (USD758/t) without concession for HRC SS400 3.0mm*1,250mm*C. According to him, the demand from downstream industries remains sluggish as there are few new projects started dragged by insufficient capitals. Meanwhile, he pointed out that the stock remains low, together with the increasing prices from overseas suppliers, supporting them to maintain prices flat rather than cut prices down, despite the poor sales performance. The trader believes prices of HRC would keep stable in the coming several days.
Presently, the trader holds around 300t in stock, and might sell 300t in March, down from 400t in February. The sales volume in the first quarter of 2023 might achieve 1,000t, against 5,000t or so in 2022.
"End users show resistance towards the continuous price increases and hold back from purchasing. We did not close any deals in recent two weeks, just several inquiries, and buyers even refuse to give ideal purchasing prices after getting our offers. We tried to contact with several clients early this week, but none of them showed intention in purchasing, and we last sold 200t at MYR3,300/t (USD736/t) at the end of February," disclosed a local trader, offering MYRR3,400/t (USD758/t) without concession for HRC SS400 3.0mm*1,250mm*C. Meanwhile, the trader pointed out that benefited from the booming exports to Europe and the USA, mills in Asia lifted HRC export prices continuously, with the markup of USD10-30/t in recent one week. Therefore, he does not plan to move down prices and predicts stable prices of HRC in the coming several days.
The trader might just sell 3,000t in March, down from 10,000t in February. With the typical monthly sales volume of 5,000t, the trader estimates that the sales volume would reach 17,000t in the first quarter of 2023, against 51,000t in 2022. He does not hold any stock at present.
"The market calmed down gradually this month after the short-term boom in February. End users turn to purchase cautiously seeing the rising prices of HRC but insufficient orders for final products. On Wednesday, a regular buyer bought 20t at MYR3,400/t (USD758/t), while he at least bought 30t at one single time in February," noted the trader, quoting MYR3,400/t (USD758/t) without concession for HRC SS400 3.0mm*1,250mm*C. According to him, the demand from downstream industries remains sluggish as there are few new projects started dragged by insufficient capitals. Meanwhile, he pointed out that the stock remains low, together with the increasing prices from overseas suppliers, supporting them to maintain prices flat rather than cut prices down, despite the poor sales performance. The trader believes prices of HRC would keep stable in the coming several days.
Presently, the trader holds around 300t in stock, and might sell 300t in March, down from 400t in February. The sales volume in the first quarter of 2023 might achieve 1,000t, against 5,000t or so in 2022.
