Malaysian seamless pipe price stable Google Bookmarks

    Seamless pipe prices are unchanged inMalaysia for the time being, while the market runs slowly without strongdownstream demand. Insiders foresee a quiet seamless pipe market inMalaysia in following several weeks.

A trader in Pahang tellsAsian Metal that his quotation for ASTM A106 GRB Φ114.3mm*6.02mmimported from China is MYR2,400/t (USD663/t), the same as last week.

Accordingto him, the Malaysian ringgit weakens against the U.S. dollargradually, and the exchange rate fell to a record low of 3.6164:1 onJanuary 20. Moreover, the government cut its annual economic growthforecasts from 5%-6% to 4.5%-5.5% amid a plunge in oil prices. Notseeing any signs of demand releasing, the source is also unconfident ofthe market prospect for seamless pipe. Holding a regular stock of500-600t, he forecasts a sluggish market in following several weeks.

Another local trader offers MYR2,350/t (USD650/t) for ASTM A106 GRB Φ114.3mm*6.02mm, unchanged over last week.

Accordingto him, Malaysian government will levy Goods and Services Tax (GST) onmost commodities circulating in the market in April. The tax rate is 6%and traders like him are required to declare dutiable goods togovernment, so he prefers to maintain his stockpile at a low level toavoid paying more taxes. Moreover, the demand from end users is notstrong and he doesn’t need to prepare many materials in his warehouse.Holding a small inventory of 200t, he forecasts a slow market infollowing several weeks.

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