Billet and rod price increase in Malaysia

Billet and rod price increase in Malaysia

Billet and rod prices in Malaysia are increased, effective from April 3, 2003. The steel prices are controlled by the government in the country and hence this increase was also subject to the approval of the government. Previously, the industry requested from the government an increase of RM 150/mt for billets and RM 121/mt for rods owing to strong demand and rising production costs. The increases approved by the government are RM90/mt for both products. Such increase will apply on the highest ceiling price of RM 880/mt for billets and RM 1'229/mt for rods. The amount of increase is calculated on the average production cost of four main mills Malayawata Steel Berhad, Amsteel Metals Sdn Bhd, Malaysia Steel Works KL Berhad and Southern Steel Berhad. It is reported that the Malaysian prices are still lower than other countries in the region such as Singapore and Indonesia. The impacts of the ongoing war are also felt in Malaysia in the form of delayed shipments at higher costs as well as tight supply of raw materials. Malaysia imports considerable quantities of iron and steel from Ukraine and Russia, shipments of which are also troubled by the war. The problem of delivery through the Suez is also interrupting raw material supply into the country. As a result, Malaysian steel producers are considering to divert their shipments to other destinations away from the Gulf area, as an immediate solution.