Tight Supply and Rising Costs Keep Malaysia Rebar Prices Firm

Malaysia’s rebar market has recently remained firm, with prices showing a steady-to-strong trend. This round of price support is primarily driven by a significant rise in production costs combined with a tightening supply structure, jointly pushing up overall market levels.

On the supply side, the market continues to tighten. Several major mills have recently undertaken equipment maintenance and production adjustments, leading to reduced output. At the same time, with domestic prices at relatively low levels in July, some mills redirected resources to the export market, further limiting local availability. Notably, buyers have generally been procuring in small batches without meaningful stock accumulation, leaving the spot market more vulnerable to the effects of supply contraction.

Cost-push factors are also evident. According to the latest tariff scheme announced by Tenaga Nasional Berhad (TNB), industrial power rates will be raised by 14.2% in the second half of 2025. SMM research indicates that electricity accounts for around 35–40% of total rebar production costs under electric arc furnace (EAF) operations. Based on this, steelmaking costs are expected to rise by 30–50 MYR per tonne. Several local mills highlighted in their latest financial reports that rising energy expenses have become a key factor eroding profit margins.

Supported by both cost increases and tighter supply, Malaysian rebar prices have risen significantly. According to SMM survey data, a major domestic mill has lifted its ex-works price for Rebar BS4449 GR500 20mm to 2,380 MYR/tonne, up from 2,200 MYR/tonne in mid-to-late July. Other specifications have also been adjusted accordingly: 10mm rebar is quoted at 150 MYR/tonne above the base size, while 12mm is at a 100 MYR/tonne premium, with both seeing an increase of around 180 MYR/tonne since mid-July.

In summary, the persistent rise in energy costs is providing solid cost support to rebar prices. Combined with supply-side tightening caused by export diversion, reduced capacity, and blast furnace maintenance, Malaysia’s rebar market is expected to maintain its steady-to-strong trajectory in the short term.