Malaysian Steel Companies Brace For Increase In Scrap Prices

Steelmakers in Kuala Lumpur, Malaysia, are bracing themselves for a possible rise in steel scrap prices if the war in Iraq prolongs.

The Malaysian Iron and Steel Industry Federation, which primarily sources this material from the Ukraine and Russia, is now turning to other markets like Australia, the U.S. and South Africa for its supply of steel scrap due to shipment delays from the traditional export sources.

Misif's executive committee member Kua Jit How said the possible price rise could be affected based on the freight and insurance costs which have increased between 10-20 percent.

"Shipment delays have not affected our production as yet, as we are tapping into the other three countries," he said after attending the signing of a memorandum of understanding agreement between Universiti Sains Malaysia, the Federation, Institute Teknologi Bandung in Indonesia and the Department of Minerals and Geoscience Malaysia.

Kua said the six steel mills in Malaysia, whose steel-making facilities currently imported 70 per cent of its steel scrap.

"We are currently paying between $185- $190 per metric ton for scrap steel," he added, saying that the steel mills were in no position to increase prices should there be a rise at source, since steel was a controlled item in this country. Business Times.