Malaysian rebar demand weak
2012-08-24 09:07:38 [Print]
BEIJING (Asian Metal) 24 Aug 12 – Although the price of rebar increases in Malaysia supported by higher ex-works price, most traders report that the demand is quite soft. Currently, prices of rebar BS4449 GR500 Φ12mm and BS4449 GR500 Φ16-32mm from local mills are MYR2,450-2,500/t (USD790-810/t) and MYR2,300-2,350/t (USD740-760/t) respectively. Observers predict that the price will be stable in a short term.
The sales manager of Makin Juta, a construction steel trader in Johor, Malaysia, quoted MYR2,470/t and MYR2,320/t respectively for rebar BS4449 GR500 Φ12mm and BS4449 GR500 Φ16-32mm from local mills, stable compared with those of last working day but up by MYR70/t compared with those of early last week.
The source said because steel mills raised ex-works prices last week, traders followed suit. However, the demand from buyers does not increase at all. “The construction process of infrastructure in Malaysia is slow, so banks are cautious to release loans to developers,” said the source. His sales volume of construction steel also shrinks to about 500tpw from previous level of over 700tpw, and the source is not confident of the coming market in September.
A small-sized rebar producer in Perak confirmed that the price is higher but the market is not active. Quoting MYR2,470/t and MYR2,320/t respectively for rebar BS4449 GR500 Φ12mm and BS4449 GR500 Φ16-32mm from local mills, the source said prices went up last week and kept unchanged since then.
“The market has been slow for about a month because of the Ramadan,” said the source, adding that although it is over now, the demand from end users is not strong as most of them are watching the market. Prices of wire rod in China keep decreasing and they are only RMB3,500-3,600/t (MYR1,750-1,800/t), much lower than those in Malaysia, so traders hold back the intention of purchasing, waiting for a price decline again in Malaysia. The source only supplies materials to some regular clients, with a monthly sales volume of around 3,000t, but his output is 3,500-4,000tpm.
The sales manager of Makin Juta, a construction steel trader in Johor, Malaysia, quoted MYR2,470/t and MYR2,320/t respectively for rebar BS4449 GR500 Φ12mm and BS4449 GR500 Φ16-32mm from local mills, stable compared with those of last working day but up by MYR70/t compared with those of early last week.
The source said because steel mills raised ex-works prices last week, traders followed suit. However, the demand from buyers does not increase at all. “The construction process of infrastructure in Malaysia is slow, so banks are cautious to release loans to developers,” said the source. His sales volume of construction steel also shrinks to about 500tpw from previous level of over 700tpw, and the source is not confident of the coming market in September.
A small-sized rebar producer in Perak confirmed that the price is higher but the market is not active. Quoting MYR2,470/t and MYR2,320/t respectively for rebar BS4449 GR500 Φ12mm and BS4449 GR500 Φ16-32mm from local mills, the source said prices went up last week and kept unchanged since then.
“The market has been slow for about a month because of the Ramadan,” said the source, adding that although it is over now, the demand from end users is not strong as most of them are watching the market. Prices of wire rod in China keep decreasing and they are only RMB3,500-3,600/t (MYR1,750-1,800/t), much lower than those in Malaysia, so traders hold back the intention of purchasing, waiting for a price decline again in Malaysia. The source only supplies materials to some regular clients, with a monthly sales volume of around 3,000t, but his output is 3,500-4,000tpm.
