Malaysian HRC market slow
2023-03-29 08:17:29 [Print]
BEIJING (Asian Metal) 29 Mar 23 - The HRC market performs inactively in Malaysia with the arrival of the Ramadan, though some traders lifted prices tentatively, end users refused to accept higher prices. Presently, the prevailing prices of HRC SS400 3.0mm*1,250mm*C stand at MYR3,300-3,450/t (USD750-784/t) D/P in warehouse Kuala Lumpur, the same as late last week. Insiders foresee stable prices in the coming several days in view of the steady market.
"Suppliers lifted prices of HRC SS400 3.0mm*1,250mm*C to MYR3,430/t (USD779/t) this week from MYR3,400/t (USD772/t) of last week, with the prices effective to early April, but we refused to buy. We last bought 10t of the material at MYR3,300/t (USD750/t) two weeks ago," noted a local consumer. "The market runs quietly as the operation of projects slow down in the Ramadan. We did not contract any new orders in recent one week," added the consumer. In the meantime, he stated that though suppliers move up prices tentatively supported by the low stocks, they show little confidence in the market prospect seeing the sluggish demand. "Normally, they quote and just maintain prices effective with 3 days, but extend the validity this week due to the absence of confidence," revealed the consumer, predicting stable prices of HRC in the following several days, with wait-and-see attitude.
Based on the monthly consumption capacity of 100t, the consumer would consume 90t in March, identical to February. He estimates that the consumption volume would reach 260t in the first quarter of 2023, against 1,100t or so in 2022, with around 150t of inventories.
"The market calmed down gradually since the middle of last week with the arrival of the Ramadan. End users tend to hold back from purchasing dragged by the insufficient orders for final products and the decelerated operation. We did not receive any inquiries nor close any deals so far this week, and last sold 10t of HRC at MYR3,300/t (USD750/t) late last week," disclosed a local trader, offering MYR3,300/t (USD750/t) without concession for HRC SS400 3.0mm*1,250mm*C at present. According to him, overseas suppliers maintain HRC export prices as high as USD740-750/t CFR Malaysia, which means they suffer losses and thus remain reluctant to decrease prices, despite the poor sales performance. Taking the steady market into consideration, the trader believes prices of HRC might go on stable in the forthcoming several days.
The trader estimates that the sales volume would reach 500t in March, up from 400t in February. With the regular monthly sales volume of 600t, he might sell 1,000t in the first quarter of 2023, against 5,000t in 2022, holding no stock right now.
"Suppliers lifted prices of HRC SS400 3.0mm*1,250mm*C to MYR3,430/t (USD779/t) this week from MYR3,400/t (USD772/t) of last week, with the prices effective to early April, but we refused to buy. We last bought 10t of the material at MYR3,300/t (USD750/t) two weeks ago," noted a local consumer. "The market runs quietly as the operation of projects slow down in the Ramadan. We did not contract any new orders in recent one week," added the consumer. In the meantime, he stated that though suppliers move up prices tentatively supported by the low stocks, they show little confidence in the market prospect seeing the sluggish demand. "Normally, they quote and just maintain prices effective with 3 days, but extend the validity this week due to the absence of confidence," revealed the consumer, predicting stable prices of HRC in the following several days, with wait-and-see attitude.
Based on the monthly consumption capacity of 100t, the consumer would consume 90t in March, identical to February. He estimates that the consumption volume would reach 260t in the first quarter of 2023, against 1,100t or so in 2022, with around 150t of inventories.
"The market calmed down gradually since the middle of last week with the arrival of the Ramadan. End users tend to hold back from purchasing dragged by the insufficient orders for final products and the decelerated operation. We did not receive any inquiries nor close any deals so far this week, and last sold 10t of HRC at MYR3,300/t (USD750/t) late last week," disclosed a local trader, offering MYR3,300/t (USD750/t) without concession for HRC SS400 3.0mm*1,250mm*C at present. According to him, overseas suppliers maintain HRC export prices as high as USD740-750/t CFR Malaysia, which means they suffer losses and thus remain reluctant to decrease prices, despite the poor sales performance. Taking the steady market into consideration, the trader believes prices of HRC might go on stable in the forthcoming several days.
The trader estimates that the sales volume would reach 500t in March, up from 400t in February. With the regular monthly sales volume of 600t, he might sell 1,000t in the first quarter of 2023, against 5,000t in 2022, holding no stock right now.
