Malaysian wire rod market slow
2023-03-31 07:42:28 [Print]
BEIJING (Asian Metal) 31 Mar 23 - Due to falling prices of raw materials and reduced demand from downstream clients, wire rod market in Malaysia performed inactively amid price decline this week. The current mainstream prices of wire rod SAE1012 Φ6.5mm stand at MYR3,200-3,250/t (USD724-735/t), down by around MYR20/t (USD5/t) from late last week. Given slow market performance and weakening prices of raw materials, insiders predict wire rod prices in Malaysia would keep declining in the coming week.
A consumer in West Malaysia revealed that he used to purchase around 300t in a week in past three weeks, while he did not have plan to purchase this week as prices changed to decline. "We got an offer of MYR3,250/t (USD735/t) for wire rod SAE1012 Φ6.5mm on Thursday, but our supplier could accept a concession of no more than MYR20/t (USD5/t)," he said, adding that his supplier insisted on MYR3,250/t (USD735/t) one week ago and he bought around 300t at this price last Friday. Seeing steel scrap prices went down by around MYR50/t (USD11/t) this week, he deems that wire rod prices would go down further by about MYR30/t (USD7/t) in the coming week.
Reporting an annual consumption capacity of 25,000t, the company used about 800t of wire rod in March, down from 1,000t in February. It consumed roughly 15,000t of wire rod in 2022 and has an inventory of roughly 800t currently, down by 200t from one week ago.
Another consumer in West Malaysia confirmed slow market performance in the Ramadan. He only has an inventory of about 500t at present, down by 400t from two weeks ago. He received an offer of MYR3,200/t (USD722/t) without concession for wire rod SAE1012 Φ6.5mm on Thursday. "I last bought about 200t of the material at MYR3,230/t (USD731/t) one week ago," he said, adding that prices of imported wire rod went down by around USD20/t in recent one week, which would bring some pressure to producers. Given this situation, he is of the opinion that wire rod prices would decline further in the coming week.
The company, based on an annual consumption capacity of 20,000t for wire rod, used approximately 17,000t of the material in 2022. It expected to use nearly 1,000t in March, similar to February.
A consumer in West Malaysia revealed that he used to purchase around 300t in a week in past three weeks, while he did not have plan to purchase this week as prices changed to decline. "We got an offer of MYR3,250/t (USD735/t) for wire rod SAE1012 Φ6.5mm on Thursday, but our supplier could accept a concession of no more than MYR20/t (USD5/t)," he said, adding that his supplier insisted on MYR3,250/t (USD735/t) one week ago and he bought around 300t at this price last Friday. Seeing steel scrap prices went down by around MYR50/t (USD11/t) this week, he deems that wire rod prices would go down further by about MYR30/t (USD7/t) in the coming week.
Reporting an annual consumption capacity of 25,000t, the company used about 800t of wire rod in March, down from 1,000t in February. It consumed roughly 15,000t of wire rod in 2022 and has an inventory of roughly 800t currently, down by 200t from one week ago.
Another consumer in West Malaysia confirmed slow market performance in the Ramadan. He only has an inventory of about 500t at present, down by 400t from two weeks ago. He received an offer of MYR3,200/t (USD722/t) without concession for wire rod SAE1012 Φ6.5mm on Thursday. "I last bought about 200t of the material at MYR3,230/t (USD731/t) one week ago," he said, adding that prices of imported wire rod went down by around USD20/t in recent one week, which would bring some pressure to producers. Given this situation, he is of the opinion that wire rod prices would decline further in the coming week.
The company, based on an annual consumption capacity of 20,000t for wire rod, used approximately 17,000t of the material in 2022. It expected to use nearly 1,000t in March, similar to February.
