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.

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