Malaysian wire rod prices decrease
2023-04-04 07:56:20 [Print]
BEIJING (Asian Metal) 4 Apr 23 - Discouraged by weakening demand from downstream clients and lower offers for imported material, wire rod prices in Malaysia declined this week. The current mainstream prices of wire rod SAE1012 Φ6.5mm stand at MYR3,180-3,230/t (USD720-731/t), down by around MYR20/t (USD5/t) from late last week. Given that suppliers showed weakening confidence and buyers hold wait-and-see attitudes, insiders predict wire rod prices in Malaysia would go down further in the coming week.
A consumer in West Malaysia reported that he got an offer of MYR3,200/t (USD725/t) for wire rod SAE1012 Φ6.5mm this Monday and his supplier could accept bids no less than MYR3,180 (USD720/t) for firm bids. "My supplier refused to accept bids lower than MYR3,200/t (USD725/t) late last week," he said, adding that he used to purchase around 200t per week in March, when prices continued to move up, while he has no plan to purchase in April, predicting wire rod prices would keep going down. In his opinion, wire rod prices would fall by another MYR20/t (USD5/t) in the coming week.
The company owns an annual consumption capacity of 25,000t and used nearly 3,000t of the material in the Q1 of this year, against 15,000t in 2022. It estimated the consumption amount would reach about 900t in April, down from 1,000t in March. It has an inventory of almost 1,000t at present, down by 200t from one week ago.
A producer in West Malaysia stated that they asked MYR3,220/t (USD729/t) for wire rod SAE1012 Φ6.5mm this Monday and could provide a discount of MYR20/t (USD5/t) at most. "I failed to close a deal on Monday and last sold around 200t at MYR3,230/t (USD731/t) last Friday," said the source, adding that imported wire rod from South Asia edged down by around USD10/t to USD650/t CFR Malaysia this week, which weakened their confidence for the coming market. He only got two inquiries in one day this week, while he could get at least four every day last week. Seeing the slow market performance, he deems that wire rod prices would edge down slightly in the coming week.
With an annual production capacity of 350,000t for wire rod, the company produced approximately 7,000t of the material in the first three months of this year and nearly 250,000t of the material in 2022. It holds an inventory of roughly 10,000t at present, without much change MoM.
A consumer in West Malaysia reported that he got an offer of MYR3,200/t (USD725/t) for wire rod SAE1012 Φ6.5mm this Monday and his supplier could accept bids no less than MYR3,180 (USD720/t) for firm bids. "My supplier refused to accept bids lower than MYR3,200/t (USD725/t) late last week," he said, adding that he used to purchase around 200t per week in March, when prices continued to move up, while he has no plan to purchase in April, predicting wire rod prices would keep going down. In his opinion, wire rod prices would fall by another MYR20/t (USD5/t) in the coming week.
The company owns an annual consumption capacity of 25,000t and used nearly 3,000t of the material in the Q1 of this year, against 15,000t in 2022. It estimated the consumption amount would reach about 900t in April, down from 1,000t in March. It has an inventory of almost 1,000t at present, down by 200t from one week ago.
A producer in West Malaysia stated that they asked MYR3,220/t (USD729/t) for wire rod SAE1012 Φ6.5mm this Monday and could provide a discount of MYR20/t (USD5/t) at most. "I failed to close a deal on Monday and last sold around 200t at MYR3,230/t (USD731/t) last Friday," said the source, adding that imported wire rod from South Asia edged down by around USD10/t to USD650/t CFR Malaysia this week, which weakened their confidence for the coming market. He only got two inquiries in one day this week, while he could get at least four every day last week. Seeing the slow market performance, he deems that wire rod prices would edge down slightly in the coming week.
With an annual production capacity of 350,000t for wire rod, the company produced approximately 7,000t of the material in the first three months of this year and nearly 250,000t of the material in 2022. It holds an inventory of roughly 10,000t at present, without much change MoM.
