Malaysian HRC market slow
2024-04-16 08:31:23 [Print]
BEIJING (Asian Metal) 16 Apr 24 - The HRC market in Malaysia performs inactively this week, dragged by the soft demand from downstream industries as well as the cautious purchasing attitudes of end users. The current prevailing prices of HRC SS400 3.0mm*1,250mm*C hover at MYR3,050-3,150/t (USD648-659/t) D/P in warehouse Kuala Lumpur, in line with late last week. Given the wait-and-see attitudes of traders, insiders predict stable prices of HRC in the coming several days.
"Dragged by the insufficient orders for final products, end users face rising capital pressures and we found it hard to withdraw capitals. Therefore, we keep cautious when cooperating with clients and almost stop developing new customers," noted a local trader, who just closed one deal of 20t HRC at MYR3,050/t (USD648/t) when quoted MYR3,100/t (USD649/t) D/P for HRC SS400 3.0mm*1,250mm*C. According to him, end users remain inactive in purchasing this week as most of them finished the sales and production before the Lesser Bairam last week. Besides, the demand from downstream industries keeps soft dragged by the shrinking exports to Europe. Taking the slow market but the losses into consideration, the trader does not plan to adjust prices and forecasts flat prices of HRC in the following several days.
Holding around 5,000t in inventory, the trader might sell 1,300t of HRC in April, down from 1,400t in March. Based on the typical monthly sales volume of 2,000t, he roughly sold 19,300t of HRC in 2023 and 4,000t in the first quarter of 2024.
"Suppliers quote MYR3,150/t (USD659/t) D/P for HRC SS400 3.0mm*1,250mm*C on Monday, but we do not plan to purchase within this week, and last bought 30t of the material at the same price early this month," disclosed a local end user. In the meantime, he points out that more and more peers suspended production dragged by insufficient orders for final products since the middle of last week, while they usually maintain normal production during the Lesser Bairam. Meanwhile, the consumer stated that they did not receive any new orders this week to date, and thus keep inactive in purchasing HRC. Given the price rebound in China but the low demand locally, the consumer believes prices of HRC would keep stable in the forthcoming several days.
With the monthly consumption capacity of 100t, the consumer estimates that the consumption volume would achieve 80t in April, down from 100t in March. He consumed approximately 260t from January to March of 2024 and 940t in 2023, holding more or less 70t in stock for the moment.
"Dragged by the insufficient orders for final products, end users face rising capital pressures and we found it hard to withdraw capitals. Therefore, we keep cautious when cooperating with clients and almost stop developing new customers," noted a local trader, who just closed one deal of 20t HRC at MYR3,050/t (USD648/t) when quoted MYR3,100/t (USD649/t) D/P for HRC SS400 3.0mm*1,250mm*C. According to him, end users remain inactive in purchasing this week as most of them finished the sales and production before the Lesser Bairam last week. Besides, the demand from downstream industries keeps soft dragged by the shrinking exports to Europe. Taking the slow market but the losses into consideration, the trader does not plan to adjust prices and forecasts flat prices of HRC in the following several days.
Holding around 5,000t in inventory, the trader might sell 1,300t of HRC in April, down from 1,400t in March. Based on the typical monthly sales volume of 2,000t, he roughly sold 19,300t of HRC in 2023 and 4,000t in the first quarter of 2024.
"Suppliers quote MYR3,150/t (USD659/t) D/P for HRC SS400 3.0mm*1,250mm*C on Monday, but we do not plan to purchase within this week, and last bought 30t of the material at the same price early this month," disclosed a local end user. In the meantime, he points out that more and more peers suspended production dragged by insufficient orders for final products since the middle of last week, while they usually maintain normal production during the Lesser Bairam. Meanwhile, the consumer stated that they did not receive any new orders this week to date, and thus keep inactive in purchasing HRC. Given the price rebound in China but the low demand locally, the consumer believes prices of HRC would keep stable in the forthcoming several days.
With the monthly consumption capacity of 100t, the consumer estimates that the consumption volume would achieve 80t in April, down from 100t in March. He consumed approximately 260t from January to March of 2024 and 940t in 2023, holding more or less 70t in stock for the moment.
