THE Steel Wire Association of Malaysia (SWAM) is calling for support from local steel mills for the supply of competitively-priced raw materials to the downstream sector."This is to offset mounting pressures on price hikes from scrap, iron ore, energy and freight," it said in a statement. Over the past 12 months, the cost of wire rods has increased eight times, or as much as 35 per cent to RM2,700 per tonne from RM1,659 previously, it said.As wire rods constitute almost 85 per cent of the total price of the finished products, SWAM said, there is no choice but to pass down the frequent high price of the finished product to consumers."Due to the high price of raw materials, our members are now facing intense competition to export their finished products," it said.SWAM said statistics from Malaysia External Trade Development Corp (Matrade) show that for 2006, of the RM8 billion worth of steel products exported, only 45 per cent, or RM360 million, come from steel wire and wire products. Read more
(7-2-2008 New Straits Times)
