Rebar Cost Model 2026 | Reinforcing Bar Production Costs

Steel Bar Mill Cost Model

Swipe the table sideways for more columns; the first column stays in place.

Costs per tonne of rebar. Figures as calculated in the model, so rows may not add exactly to the totals because of rounding. Source: Metals Consulting International. A dash (–) means not applicable. Data as of mid-2026.

Rebar Cost Modelling Notes and Assumptions

The economic model shown above is prepared only to show how rebar costs can be estimated through a simple cost benchmarking approach. The predicted total cost shown is not meant to represent an actual cost for any real steel company. It is a notional figure only – albeit one that is built on fairly representative current input cost (e.g. electricity prices) and resource usage information.

Key input costs are based on anticipated mid-2026 world average costs, with ferrous scrap at ~US$314 per tonne and billet at ~US$580 per tonne. Other factor costs e.g. electricity are from other pages shown on the SteelOnTheNet website, with factor usage (energy use, yield etc) estimated by our technical experts and economists. SG&A denotes sales, general and administration cost. MHPT denotes man hours per tonne (a measure of labour force productivity).

The steel product for which the cost is shown above is a tonne of deformed reinforcing bar of approx 12 mm diameter. The cost is for a notional small scale producer who has to purchase billet on the open market, and rolls this into rebar in a small size rolling mill of ~250 kt/yr capacity. Average labour productivity is assumed at a blue collar wage cost of US$50,000 a year. To prepare cost benchmarks for specific locations please contact us (see below). Steel costs for the electric furnace steelmaking process route (EAF steelmaking) may be found on our EAF steelmaking costs page.

The production process assumes a typical production process route, with natural-gas based billet reheating followed by rolling. Rebar production costs on a MIDA-type endless casting and rolling type mill would of course be significantly cheaper than shown here.

Site visitors are advised that all estimates shown should be adjusted to reflect the particular business environment in which the steel plant operates. Thus, electricity charges may be substantially cheaper than usual because the rolling mill is run primarily at night (to benefit from cheaper night time tariffs). Depreciation costs above are based on a rebar mill capex cost of US$150 per tonne, but may be higher or lower depending on the mill supplier. Labour productivity may also be substantially poorer than shown (especially in State-owned plants) etc.

Actual costing estimates may differ because of local accounting practices or policies. The figures above for example assume straight line depreciation over a 20-year asset lifetime. The estimates also assume that 25% of labour costs are fixed – whilst in practice, all costs will be variable over the longer term. The model above endeavours to present the economic data on the basis of standard management accounting practices – users of the model should however be clear that the model is likely to require adaptation for different accounting circumstances.

To estimate the impact of a change in any main input (e.g. location, billet cost, energy cost or labour cost) on the total, fixed or variable production costs of any steel product (semi-finished; or flat, long, or pipe and tube finished steel) made through either main production process route (integrated steel manufacturing or electric arc steelmaking), please contact our steel cost economists.

Need costs for your own plant or location? Request a custom cost model →