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Steel production curbs in China is good news for Malaysia- The 18th China(Guangzhou) Int¡¯l Plate metal, Bar, Wire, Metal Processing &Setting Equipment Exhibition
12/29/2016 plate metal expo |
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The Star Online reported that steel production curb in China is good news for manufacturers around the world. Chin Well Holdings Bhd, a Penang based maker of industrial grade fasteners, sees a strong pick up in demand next year as clients in Europe stock up in anticipation of a further increase in prices.
Ms Tsai Chia-ling Chin Well group executive director told StarBiz that ¡°The price of wire rods has gone up by more than 80% since early 2016 because China has cut back on steel production.¡± She added that ¡°Customers expect the price of steel to continue to go up in 2017.¡±
Ms Tsai said that ¡°We can also expect more buying from Europe next spring because that is when a lot of construction activities start to happen.¡±
She added that ¡°The weakened ringgit will also help to make our products more attractive to customers.¡±
Ms Tsai said the group was reducing its production of industrial grade fasteners. She said that ¡°We expect to produce less than 100,000 tonnes of fasteners for the financial year 2017 (FY17) ending next June, which means that the per quarter output of fasteners for FY17 would be less than 25,000 tonnes.¡±
Meanwhile, the group is increasing its production of grill mesh next April to 450 tonnes a month from current 300 tonnes. This is slightly more than a tird of its installed capacity of 1,200 tonnes a month.
-- The 18th China(Guangzhou) Int¡¯l Plate
metal, Bar, Wire, Metal Processing &Setting Equipment Exhibition
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