Posted on 12 Dec 2023
The official price index of steel in Malaysia recorded an increase between 0.1% and 2% in November as compared to the previous month, Kallanish notes.
The Department of Statistics Malaysia (DOSM) says in a statement that the increase in the price index of steel was in tandem with changes in the price of iron ore and steel at the global level.
The average price per unit of steel, consisting of mild steel round bars and Mycon 60 high tensile deformed bars was MYR 3,621.02/tonne ($776.04/t), recording a slight increase of 0.9% from MYR 3590.4/t in October.
Citing the Commodity Market Outlook report by the World Bank in October, the DOSM says iron ore prices rebounded by 3% in the third quarter as compared to the previous quarter driven by strong steel production in China.
Although China’s property sector remains weak, demand for construction completions, infrastructure and steel exports boosted demand.
The report also mentioned that a seasonal fall in China’s steel production is expected in the fourth quarter, further supported by government mandated cuts on steel production to improve air quality.
Subdued construction and manufacturing activity in China, weak demand elsewhere, and growing iron ore supply are expected to keep a lid on iron ore prices.
The report also stated that for the remainder of year 2023 and into 2024, steel production cuts in China and subdued global economic activity are expected to weigh on iron ore demand.
As a result, iron ore prices are expected to be 11% lower in 2023 and fall further in 2024 and 2025.
Source:Kallanish
