Price index of steel falls 0.5% to 4% in July – DoSM

KUALA LUMPUR: Steel prices in most parts of Malaysia showed a month-on-month (m-o-m) decline in July 2023 with the price index per unit of steel falling by between 0.5 per cent and 4.0 per cent, according to the Department of Statistics Malaysia (DoSM).

In a statement, chief statistician Datuk Seri Mohd Uzir Mahidin said the price index per unit of steel and metal sections also recorded a decrease of between 0.2 per cent and 4.0 per cent for several areas in Peninsular Malaysia, Sabah and Sarawak.

“The decrease in the price index of steel, as well as steel and metal sections, were in line with the scenario of decreases in the prices of steel and iron ore at the global level,” he said.

Cement, another major building material, has also began to record a m-o-m price decrease, declining by 0.2 per cent to 1.7 per cent.

However, aggregates increased in price by between 0.2 per cent and 2.7 per cent based on the selected areas, he said.

On a year-on-year (y-o-y) basis, Mohd Uzir said the unit price index of cement for July 2023 recorded an increase of between 2.9 per cent and 23.8 per cent for all areas in Peninsular Malaysia, Sabah, and Sarawak.

Overall, DoSm said, the unit price index of building materials in the Peninsular Malaysia rose by between 0.2 per cent and 23.8 per cent in July 2023 compared to the same month last year.

In Peninsular Malaysia, the highest gains in cement cost was seen in Kelantan and Terengganu (up 23.8 per cent) as well as Penang, Kedah and Perlis (18.0 per cent).

“Meanwhile, the price index for a unit of construction materials that recorded the highest increase in Sabah was plumbing materials in Kota Kinabalu (14.6 per cent), while in Sarawak it was timber in Sibu (31.7 per cent) and bricks and wall materials in Miri (21.1 per cent),” it said.

DoSM said the Building Cost Material Index (BCI) (with steel bars) for all building categories in Peninsular Malaysia in July 2023 rose between 0.2 per cent and 3.8 per cent compared to the previous month.

The highest increase was recorded for timber piling in Penang, Kedah and Perlis.

The BCI with steel bars for Sabah recorded a slower decrease of between 0.1 and 1.4 per cent for almost all construction categories in Kota Kinabalu and Tawau in July 2023 versus the previous month.

Meanwhile, the BCI with steel bars for all building categories in Sandakan remained unchanged in July 2023.

On a monthly basis, BCI with steel bars in Sarawak for July 2023 showed decreases of between 0.1 and 2.1 per cent for almost all building categories, especially in Kuching and Miri.

“However, the index for most building categories in Sibu recorded increases of between 0.1 and 0.2 per cent,” DoSM said. – BK