Malaysian steel consumers seek transparent pricing structure

Malaysian steel consumers seek transparent pricing structure

At a dialogue initiated by the Domestic Trade and Consumer Affairs Ministry (DTCAF) held yesterday in Kuala Lampur; Malaysia, steel industry players agreed in principle to a proposed automatic pricing mechanism (APM) for steel bars and billets, provided that it is transparent. Steel consumers in Malaysia were represented at the dialogue by three associations, Master Builders Association of Malaysia (MBAM), Malay Contractors Association (MCA) and Real Estate and Housing Developers Association (REHDA). Collectively, they are seeking transparency in the automated pricing mechanism for steel bars and billets proposed by the steel mills. According to the steel consumers, a transparent pricing system will result in fair pricing. The Minister of DTCAF announced that the proposals submitted by the participants in the dialogue will be submitted to the Cabinet soon. As previously reported by SteelOrbis a few weeks ago, MBAM had requested the Malaysia Ministry of International Trade and Industry (MITI) to extend the ban on exports of rebar that was to expire on August 25, 2004 for another six months to ensure availability in the domestic market. Although a final decision has not been released, the government is expected to extend the ban on rebar exports for another 6 months, despite appeals by the Malaysia Steel & Iron Federation (MISIF).