Construction sector urges Malaysian government for APM
Certain officials on behalf of construction sector in Malaysia have recently demanded government to implement Automatic Pricing Mechanism (APM) for steel products with an immediate effect as they suffer from supply problem due to the prices. Representatives of construction sector believe that if APM is implemented, the problem of steel shortage in domestic market will be eliminated, as the price of steel will automatically be adjusted in line with the cost of raw material. Currently, approximately 90% of steel demand in Malaysia is met through imports. As previously reported by SteelOrbis, Malaysian Ministry of International Trade and Industry (MITI) completed the APM however the new regulation has been waiting for the approval of the government. It is stated that prevailing price of steel bars in Malaysia is at the level of RM 1'570 per ton ($413) per ton. The prices have increased 20-30% recently however they are still lower than the prices in international markets.