Malaysia's epidemic prevention measures bring uncertainty to the steel market
According to foreign sources on January 12, the Malaysian government began to implement more stringent epidemic prevention and control measures on January 13, which has created uncertainty in the local steel industry, sources expect scrap delivery may be delayed, and downstream market recovery momentum may be reversed.
The Ministry of Trade and Industry of Malaysia said that the three federal territories of Penang, Selangor, Malacca, Johor, Sabah and Kuala Lumpur, Bucheng and Labuan would be subject to travel control, which would last two weeks until 26 January.
Although manufacturing and steel production will be allowed to proceed after certain safety measures, interstate transport during these two weeks is a major challenge.
A trader based in kuala lumpur said:“ As these states are blocked and roads are blocked, the transport will undoubtedly be affected.” “Both Kuan Dan on the east coast and Penang on the north have their own ports and local waste supplies, but a large proportion of Malaysian waste is generated in the capital and scrap delivery in the region will be problematic.”
Interstate logistics disruptions could put short-term upward pressure on domestic scrap prices in Malaysia. The source speculated that trucking companies or yards might take additional fuel costs into account to transport scrap to factories farther from the city.
In the maritime market bullish, Malaysia's domestic scrap prices have been rising. For example, prior to the blockade, the price of high-quality scrap steel delivered to the Kandan steel plant on 12 January had reached the level of 1,680 M $/ ton (about US $413/ ton) and had risen by 370 M $/ ton since early December.
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