Malaysian Steel and Metal Chamber of Commerce (MSMDA)
Huang Mingqiang: Transportation fees soared by 400%, high steel prices are not good for traders
April 08, 2021
(Kuala Lumpur, 8th) The President of the Malaysian Steel and Metal Chamber of Commerce (MSMDA) Datuk Seri Huang Mingqiang said that the current high steel prices are due to rising raw material prices, rising exchange rates, and insufficient space for shipping containers and ships, which has led to a 300 increase in shipping costs. To 400%.
He said that the high price of domestic steel products and the continuous emergence of shortages have caused the traders, importers and stockists of the members of the association to increase a lot of trouble and pressure, and it is miserable.
"Once the inventory is sold, it must be ordered at a higher price. Not only does the ordering cost increase a lot, it also increases the inventory risk. Once the price drops, it will cause huge losses and face various credit problems. .
"Therefore, most members can only replenish their products from their peers. Although some have previously ordered from foreign manufacturers, the prices of steel fluctuate too fast and too high, and manufacturers cancel orders and deliver goods. This is also the case. It also happened to local steel manufacturers, and orders were also cancelled when prices fluctuated sharply."
He issued a statement saying that the constant problems of container transportation are factors that cause the price of steel to rise. Therefore, members should pay attention to the changes in steel prices to avoid losses.
He reiterated that high steel prices are very detrimental to traders. Not only do operating costs increase significantly, but they also face higher risks. If you don’t buy goods, you can’t do business. Lost money.