[SMM Malaysia Weekly Review] HRC and Rebar Offers Rise as Imports Gain Price Advantage

Malaysia's steel market maintained a firmer pricing trend this week, with domestic HRC and rebar quotations moving higher while wire rod prices remained stable. Domestic HRC offers rose by MYR 20/tonne from September 30 to MYR 2,220/tonne EXW, while 16mm B500B rebar quotations increased by MYR 50/tonne to MYR 2,230/tonne EXW. However, the rebar comparison involves different suppliers and does not necessarily reflect a like-for-like mill price increase. C12D wire rod remained unchanged at MYR 2,300/tonne delivered. Despite firmer quotations, downstream demand remained subdued, with some stockists previously reporting selling prices MYR 20–30/tonne below mill reference levels amid persistent inventory pressure.

On the import front, Chinese HRC was offered at USD 520–530/tonne CFR Port Klang, equivalent to approximately MYR 2,125–2,166/tonne, representing an initial MYR 54–95/tonne discount against domestic ex-works prices. Indonesian wire rod was quoted at approximately USD 525/tonne CFR Malaysia, equivalent to MYR 2,145/tonne, around MYR 155/tonne below domestic delivered quotations. Competitive import offers have attracted interest from Malaysian buyers, particularly steel mesh manufacturers, although the preliminary price advantages exclude additional port handling, customs clearance and inland transportation costs. Separately, CSC Steel's pickling and oiling line is reportedly scheduled for maintenance in late November, with minimal production disruption anticipated.

Looking ahead, Malaysian steel prices are expected to maintain a stable-to-firm posture, supported by higher domestic mill quotations. However, sluggish downstream consumption, stockist inventory pressure and increasingly competitive import offers could limit further upside. Market participants will closely monitor actual import bookings, inventory movements and whether higher domestic offers translate into confirmed transactions.