Building materials sector outlook seen improving
“Local steel bar prices improved marginally to RM2,195 per tonne as at July 12, compared to RM2,165 per tonne in June, largely due to a low base effect during the Ramadhan and Hari Raya season - compounded by muted construction activities. “We are forecasting steel ASPs of RM2,400 and RM2,500 for RM2,200 and RM2,300 for 2019 and 2020, respectively,” said UOBKayHian.
PETALING JAYA: Prospects for the local building materials industry is expected to improve in the second half of the year, on the back of the commencement of mega and infrastructure projects.
In a sector update report, UOBKayHian expects more construction activities in the second half of 2019, which will create more cement and steel demand.
Additionally, industry consolidation in the cement industry, as well as a potential easing in steel oversupply in the second half of the year, would support a recovery in average selling prices (ASPs).
...
The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.
Related Stocks
Comments