Malaysian wire rod price in downtrend
2012-10-23 16:51:26 [Print]
BEIJING (Asian Metal) 21 Sep 12 - The current wire rod price in Malaysia is still in a downward trend because of the continuous weak demand and the influence from Chinese low-cost materials. The current price of SAE1008 Φ5.5mm from local mills is MYR2,150-2,200/t (USD700-720/t), down by MYR100/t compared with that of last month. Observers predict that the price will remain low in a short term.
The sales manager of Salayan, a hard drawn wire producer in Perak said the current price of wire rod SAE1008 Φ5.5mm from local mills is MYR2,150/t, the same as that of last week, but down by MYR100/t compared with that of August.
Because the import price of wire rod from China is still quite low, at about USD560/t CFR Malaysia, which is much lower than the local price, many buyers prefer to import materials from China rather than from local mills. Thus, steel mills have to decrease ex-works price to attract customers. “I just received a call from the mill this morning, trying to sell wire rod to me, at a price of MYR2,120/t for orders of more than 200t,” said the source, adding that he refused because he worried the price will go down further.
Meanwhile, the market performance in Malaysia is unpleasant and he predicted that his sales volume of rebar and hard drawn wire in September will be decreased by 10% compared with that in August.
Another end user in Kuala Lumpur confirmed that the current price of wire rod is lower. Quoting MYR2,150/t for SAE1008 Φ5.5mm from local mills, he said the price is MYR50/t lower compared with that of two weeks ago.
He said the current steel market in Malaysia is slow because it is said the General Election would be held at the end of this year, most developers dare not begin the operation of construction projects before it. Besides, the steel market price in China is not stable and may go down again after a sharp markup of RMB200-300/t, which makes traders in Malaysia unconfident. The source is still watching the market and is not eager to replenish the stock in a short term, with a current inventory of 400-500t.
The sales manager of Salayan, a hard drawn wire producer in Perak said the current price of wire rod SAE1008 Φ5.5mm from local mills is MYR2,150/t, the same as that of last week, but down by MYR100/t compared with that of August.
Because the import price of wire rod from China is still quite low, at about USD560/t CFR Malaysia, which is much lower than the local price, many buyers prefer to import materials from China rather than from local mills. Thus, steel mills have to decrease ex-works price to attract customers. “I just received a call from the mill this morning, trying to sell wire rod to me, at a price of MYR2,120/t for orders of more than 200t,” said the source, adding that he refused because he worried the price will go down further.
Meanwhile, the market performance in Malaysia is unpleasant and he predicted that his sales volume of rebar and hard drawn wire in September will be decreased by 10% compared with that in August.
Another end user in Kuala Lumpur confirmed that the current price of wire rod is lower. Quoting MYR2,150/t for SAE1008 Φ5.5mm from local mills, he said the price is MYR50/t lower compared with that of two weeks ago.
He said the current steel market in Malaysia is slow because it is said the General Election would be held at the end of this year, most developers dare not begin the operation of construction projects before it. Besides, the steel market price in China is not stable and may go down again after a sharp markup of RMB200-300/t, which makes traders in Malaysia unconfident. The source is still watching the market and is not eager to replenish the stock in a short term, with a current inventory of 400-500t.
