KUALA LUMPUR: Average steel bar prices in Malaysia eased 0.53 per cent month-on-month (MoM) to RM3,706.95 per tonne in June, according to MIDF Research.
Average cement prices, meanwhile, grew 0.2 per cent MoM to RM22.87 per kilogramme (kg).
Cement prices in Peninsular Malaysia edged up 0.6 per cent MoM to RM22.36 per kg while prices in Sabah and Sarawak remained unchanged at RM23.12 per kg
MIDF Research said average steel bar prices in the peninsula dropped one per cent MoM to RM3,289.81 per tonne while Sabah and Sarawak saw a -0.3 per cent MoM decline to RM3,915.52 per tonne
"The average prices of steel bars in Malaysia softened for the second consecutive month, in line with the decline in the international prices of steel and iron ore," the firm said today.
This was expected when China
authorities stepped in to curb the surge in iron ore prices back in March.
"Based on the prices of five types of mild steel bars and four types of high
tensile deformed bars tracked by the Department of Statistics Malaysia,, the average price declined 0.53 per cent MoM in June (May: -0.34 per cent MoM) to RM3,706.95 per tonne," it said.
MIDF Research maintained its "Positive" stance on construction sector as cost headwinds remain manageable.
It likes stocks such as Gamuda Bhd (Buy, target price: RM5.04), IJM Corp Bhd (Buy, TP: RM1.93), Sunway Construction Group Bhd (Buy, TP: RM2.09) and Malayan Cement Bhd (Buy, TP: RM3.74).