The Malaysian Reserve reported that MASTER Builders Association Malaysia has called for government’s intervention on the issue of rising steel prices, which result in higher building material costs. MBAM president Mr Tan Sri Sufri Mhd Zin said “We want stable prices for steel as there are no price fluctuation clauses in private contracts. However, there are no further deliberations on this issue planned at the moment. It is best that government authorities such as the Ministry of International Trade and Industry and Malaysian Competition Commission investigate and comment on the issue of rising steel prices.” According to the Malaysian Iron and Steel Industry Federation and the Malaysia Steel Association, steel bar prices rose in the first half of 2021, owing primarily to strong demand resulting from global economic recovery and hike in raw material prices, particularly scrap, iron ore and coking coal, due to supply tightness and global supply chain disruption. They said “Coupled with the Chinese government’s tight control over steel production and the removal of export rebates, the increasing raw material costs are reflected in rising steel prices. Rising energy prices, such as a 64% increase in natural gas tariff in 2021 in Malaysia, as well as a surge in international freight costs also contributed to the increase in imported material costs and steel prices. Hence, domestic steel bar manufacturers have no control over steel prices, given that the domestic steel prices are subject to the global supply and demand dynamics.”Founded in 1954 by the late Mr Tan Sri Dato’ Low Yat, the Master Builders Association Malaysia plays an important role in the development and advancement of the construction industry. Dedicated towards promoting and developing the construction industry in Malaysia, MBAM has evolved into a cohesive umbrella organization.
The Malaysian Reserve reported that MASTER Builders Association Malaysia has called for government’s intervention on the issue of rising steel prices, which result in higher building material costs. MBAM president Mr Tan Sri Sufri Mhd Zin said “We want stable prices for steel as there are no price fluctuation clauses in private contracts. However, there are no further deliberations on this issue planned at the moment. It is best that government authorities such as the Ministry of International Trade and Industry and Malaysian Competition Commission investigate and comment on the issue of rising steel prices.” According to the Malaysian Iron and Steel Industry Federation and the Malaysia Steel Association, steel bar prices rose in the first half of 2021, owing primarily to strong demand resulting from global economic recovery and hike in raw material prices, particularly scrap, iron ore and coking coal, due to supply tightness and global supply chain disruption. They said “Coupled with the Chinese government’s tight control over steel production and the removal of export rebates, the increasing raw material costs are reflected in rising steel prices. Rising energy prices, such as a 64% increase in natural gas tariff in 2021 in Malaysia, as well as a surge in international freight costs also contributed to the increase in imported material costs and steel prices. Hence, domestic steel bar manufacturers have no control over steel prices, given that the domestic steel prices are subject to the global supply and demand dynamics.”Founded in 1954 by the late Mr Tan Sri Dato’ Low Yat, the Master Builders Association Malaysia plays an important role in the development and advancement of the construction industry. Dedicated towards promoting and developing the construction industry in Malaysia, MBAM has evolved into a cohesive umbrella organization.
