Shortage of rebar in Malaysia is unlikely

Shortage of rebar in Malaysia is unlikely

Upon the request of Master Builders Association Malaysia (MBAM) regarding the extension of the ban on steel rebar exports, certain analysts claimed that shortage of subject material in the domestic market is not likely due to the slowdown in the construction activities in the country. Construction industry is concerned that steel producers will start exporting billet and rebar as soon as the export prices become higher than the controlled domestic prices. On this ground, they demand the ban on exports to be extended for another six months. On the other hand, certain analysts claim that the recent increase in the ceiling prices of subject products is sufficient to create steel availability in the domestic market. Industry players agree with the analysts, believing that domestic market will not face shortage as construction activities have slowed down.