Malaysian wire rod market inactive
2023-04-13 08:08:46 [Print]
BEIJING (Asian Metal) 13 Apr 23 - Given falling prices of raw materials and weakened demand from downstream industries in the Ramadan, Malaysian wire rod market ran slowly this week amid price decline. The current mainstream prices of wire rod SAE1012 Φ6.5mm stand at MYR3,130-3,180/t (USD710-721/t), down by around MYR50/t (USD11/t) from one week ago. Discouraged by lower offers for imported materials and bearish attitudes from participants, insiders predict wire rod prices in Malaysia would fall further in the coming week.
A producer in West Malaysia revealed that most of his clients purchased with minimum volume of around 35t at a time this week, while they used to purchase at least 100t last month. He asked MYR3,180/t (USD721/t) for wire rod SAE1012 Φ6.5mm this Wednesday and could accept a concession no more than MYR30/t (USD7/t). "I last sold around 70t of the material at MYR3,200/t (USD726/t) late last week," reported the source, adding that imported wire rod from South Asia fell by around USD20/t to USD630/t CFR Malaysia this week and most clients prefer to watch the market for more days. Seeing the slow market performance, he predicts that wire rod prices would go down further in the coming week.
The company owns an annual production capacity of 250,000t for wire rod and produced nearly 200,000t of the material in 2022. It recorded an output of almost 18,000t of the material in Q1 of this year. It plans an output of about 8,000t in April, up from 6,000t in March. Currently it holds an inventory of 5,000t or so, unchanged MoM.
A consumer in West Malaysia confirmed the slow market performance. "I did not place orders in two weeks, while I placed an order of nearly 200t per week in March," reported the source, adding that his supplier asked MYR3,150/t (USD714/t) for wire rod SAE1012 Φ6.5mm this Wednesday and could accept bids no less than MYR3,130/t (USD710/t). He could buy around 200t at MYR3,200/t (USD736/t) one week ago if he placed orders. Seeing prices of raw materials kept weakening, he delayed the purchasing activities and deems wire rod prices would edge down further in the coming week.
Reporting an annual consumption capacity of 10,000t for wire rod, the company used approximately 8,000t of the material in 2022 and nearly 2,000t in the Q1 of this year. It estimated a consumption volume of 600t or so in April, down from 700t in March.
A producer in West Malaysia revealed that most of his clients purchased with minimum volume of around 35t at a time this week, while they used to purchase at least 100t last month. He asked MYR3,180/t (USD721/t) for wire rod SAE1012 Φ6.5mm this Wednesday and could accept a concession no more than MYR30/t (USD7/t). "I last sold around 70t of the material at MYR3,200/t (USD726/t) late last week," reported the source, adding that imported wire rod from South Asia fell by around USD20/t to USD630/t CFR Malaysia this week and most clients prefer to watch the market for more days. Seeing the slow market performance, he predicts that wire rod prices would go down further in the coming week.
The company owns an annual production capacity of 250,000t for wire rod and produced nearly 200,000t of the material in 2022. It recorded an output of almost 18,000t of the material in Q1 of this year. It plans an output of about 8,000t in April, up from 6,000t in March. Currently it holds an inventory of 5,000t or so, unchanged MoM.
A consumer in West Malaysia confirmed the slow market performance. "I did not place orders in two weeks, while I placed an order of nearly 200t per week in March," reported the source, adding that his supplier asked MYR3,150/t (USD714/t) for wire rod SAE1012 Φ6.5mm this Wednesday and could accept bids no less than MYR3,130/t (USD710/t). He could buy around 200t at MYR3,200/t (USD736/t) one week ago if he placed orders. Seeing prices of raw materials kept weakening, he delayed the purchasing activities and deems wire rod prices would edge down further in the coming week.
Reporting an annual consumption capacity of 10,000t for wire rod, the company used approximately 8,000t of the material in 2022 and nearly 2,000t in the Q1 of this year. It estimated a consumption volume of 600t or so in April, down from 700t in March.
