South East Asia

Conditions at Malaysian ports are continuing their gradual improvement. Containers that had been held for extended periods are now slowly moving through the inspection process, with some being cleared, released or re-exported. Market participants have drawn encouragement from the fact that long-standing congestion is beginning to ease, allowing material flows to resume.

However, transparency from Malaysian Customs remains limited. Market participants report that inspected shipments found to contain printed circuit boards are being rejected and returned to origin. Beyond this, customs authorities have not provided clear guidance regarding other criteria that may result in cargoes being denied entry or ordered to be re-exported.

Market conditions in Thailand remain generally stable. Nevertheless, the global economic slowdown is continuing to weigh on overall demand, resulting in relatively weak consumption across several sectors. In recent weeks, geopolitical tensions affecting regional shipping routes disrupted aluminium ingot supplies and pushed raw material prices higher. However, with logistics conditions improving and supply channels reopening, significant volumes of aluminium ingots have entered the market. Additional supply from China has also helped offset concerns about potential disruptions to global aluminium availability. As a result, supply pressures have eased considerably, and raw material prices have come under downward pressure. From the recycling industry’s perspective, improved availability of primary aluminium has softened raw material prices and also reduced immediate supply concerns.

While freight costs and geopolitical risks continue to be monitored closely, the market has so far avoided the severe supply shock that many participants initially feared. Market sentiment remains cautious owing to the broader economic environment, but current supply conditions are considerably more stable than they were several weeks ago.