Malaysian wire rod market inactive
2023-03-17 07:48:48 [Print]
BEIJING (Asian Metal) 17 Mar 23 - Due to rising prices of raw materials, wire rod prices in Malaysia went up this week. The current mainstream prices of wire rod SAE1012 Φ6.5mm stand at MYR3,200-3,250/t (USD711-722/t), up by around MYR50/t (USD11/t) from one week ago. Upon firm cost but weakening demand from downstream buyers, insiders predict wire rod prices in Malaysia would stop rising and remain flat in the coming week.
A consumer in West Malaysia stated that he has no intention to place orders this week as wire rod prices totally edged up by around MYR150/t (USD33/t) so far in March. However, the demand from his clients would shrink when the Ramadan is approaching. He got an offer of MYR3,250/t (USD722/t) without concession for wire rod SAE1012 Φ6.5mm on Thursday. "I last bought around 500t at MYR3,200/t (USD711/t) one week ago," he said, adding that imported wire rod from Indonesia went up by around USD10/t to USD690/t CFR Malaysia this week, which stimulated steel mills in Malaysia to hike offers accordingly. However, as the demand might weaken when the Ramadan is coming, he deems wire rod prices would remain stable in the coming week.
The company, based on an annual consumption amount of about 25,000t, used almost 15,000t of wire rod in 2022. It estimated the consumption volume would reach about 800t in March, down from 1,000t in February. It has an inventory of nearly 1,000t at present, without much change from two weeks ago.
A producer in West Malaysia revealed that clients remained inactive in placing orders though prices continued on the upward trend this month. He could get no more than three inquiries in one day this week, while he could received at least three every day last week. On Thursday he asked MYR3,250/t (USD722/t) for wire rod SAE1012 Φ6.5mm and could accept bids no less than MYR3,200/t (USD711/t) from regular clients. "I last sold around 1,200t of the material at MYR3,150/t (USD700/t) to a regular client one week ago," he said, adding that they faced tight supply of steel scrap and had to lift wire rod prices this week. Given weakening market performance but firm cost, he is of the opinion that wire rod prices would keep firm in the coming week.
Owning an annual production capacity of 250,000t for wire rod, the company recorded an output of about 200,000t in 2022. It estimated the output would reach almost 6,000t in March, similar to February. It holds an inventory of nearly 4,000t at present, down by 2,000t from one week ago.
A consumer in West Malaysia stated that he has no intention to place orders this week as wire rod prices totally edged up by around MYR150/t (USD33/t) so far in March. However, the demand from his clients would shrink when the Ramadan is approaching. He got an offer of MYR3,250/t (USD722/t) without concession for wire rod SAE1012 Φ6.5mm on Thursday. "I last bought around 500t at MYR3,200/t (USD711/t) one week ago," he said, adding that imported wire rod from Indonesia went up by around USD10/t to USD690/t CFR Malaysia this week, which stimulated steel mills in Malaysia to hike offers accordingly. However, as the demand might weaken when the Ramadan is coming, he deems wire rod prices would remain stable in the coming week.
The company, based on an annual consumption amount of about 25,000t, used almost 15,000t of wire rod in 2022. It estimated the consumption volume would reach about 800t in March, down from 1,000t in February. It has an inventory of nearly 1,000t at present, without much change from two weeks ago.
A producer in West Malaysia revealed that clients remained inactive in placing orders though prices continued on the upward trend this month. He could get no more than three inquiries in one day this week, while he could received at least three every day last week. On Thursday he asked MYR3,250/t (USD722/t) for wire rod SAE1012 Φ6.5mm and could accept bids no less than MYR3,200/t (USD711/t) from regular clients. "I last sold around 1,200t of the material at MYR3,150/t (USD700/t) to a regular client one week ago," he said, adding that they faced tight supply of steel scrap and had to lift wire rod prices this week. Given weakening market performance but firm cost, he is of the opinion that wire rod prices would keep firm in the coming week.
Owning an annual production capacity of 250,000t for wire rod, the company recorded an output of about 200,000t in 2022. It estimated the output would reach almost 6,000t in March, similar to February. It holds an inventory of nearly 4,000t at present, down by 2,000t from one week ago.
