Malaysian wire rod price down again
2012-11-22 15:11:30 [Print]
BEIJING (Asian Metal) 11 Oct 12 - The price of wire rod in Malaysia goes down again with that of SAE1008 Φ5.5mm from local mills at MYR2,050-2,100/t (USD660-680/t), down by MYR100/t compared with that of last week. 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 MYR2,050/t, the same as that of last working day, but down by MYR100/t compared with that of last week.
According to the source, steel mills of wire rod in Malaysia took further measures to compete with materials from China, in spite of a huge loss of MYR200/t at current low ex-works price. “The current import price of wire rod from China is about MYR2,000/t, so local mills lowered quotations to MYR2,050/t to attract buyers,” said the source. It is said that the government will impose import tax on Chinese wire rod which is expected to be issued at the end of October and the tax will be over 15%. Thus, the source believed that the market price will move up greatly after that.
Another end user in Kuala Lumpur confirmed that the current price of wire rod is lower. Quoting MYR2,050/t for SAE1008 Φ5.5mm from local mills, he said the price is MYR100/t lower compared with that of one week ago.
Besides the factor of the impact of Chinese materials, the source said the weak demand is another important reason for a lower price. He said the General Election date is not fixed, and before that, few construction projects dare to start the operation, so the current market is rather dull. The source’s stock keeps at 400-500t and his regular consumption is only 200tpm, so he is not eager to replenish the inventory 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 MYR2,050/t, the same as that of last working day, but down by MYR100/t compared with that of last week.
According to the source, steel mills of wire rod in Malaysia took further measures to compete with materials from China, in spite of a huge loss of MYR200/t at current low ex-works price. “The current import price of wire rod from China is about MYR2,000/t, so local mills lowered quotations to MYR2,050/t to attract buyers,” said the source. It is said that the government will impose import tax on Chinese wire rod which is expected to be issued at the end of October and the tax will be over 15%. Thus, the source believed that the market price will move up greatly after that.
Another end user in Kuala Lumpur confirmed that the current price of wire rod is lower. Quoting MYR2,050/t for SAE1008 Φ5.5mm from local mills, he said the price is MYR100/t lower compared with that of one week ago.
Besides the factor of the impact of Chinese materials, the source said the weak demand is another important reason for a lower price. He said the General Election date is not fixed, and before that, few construction projects dare to start the operation, so the current market is rather dull. The source’s stock keeps at 400-500t and his regular consumption is only 200tpm, so he is not eager to replenish the inventory in a short term.
