- POSCO to influence global stainless steel supply balance
- Indonesian slab imports expected by end of next year
SteelDaily: A leading South Korean stainless steel manufacturer, POSCO has begun full-scale procurement of stainless steel slabs from Indonesia by securing a 44.12% stake in PT Xinheng Metal Indonesia, a company known for producing nickel pig iron and stainless steel slabs. This joint venture with Chinese firm Makmur International Investment PTE Ltd strengthens POSCO’s raw material sourcing and ties it closely with the global stainless steel industry.
Indonesia, being the largest nickel producer globally, is a critical supply base for stainless steel. Xinheng Metal connects POSCO with the Indonesian stainless steel production network linked to China’s Tsingshan Group, effectively forming a strategic partnership. This collaboration positions POSCO to influence the global stainless steel supply balance significantly.
Industry insiders suggest that POSCO’s slab imports from Indonesia could commence by the end of next year, with the Indonesian production facility estimated to have an annual capacity of one million tons. The joint venture marks a milestone in POSCO’s sourcing strategy amid increasing demand and global supply shifts.
While POSCO has yet to release an official statement on the timeline for slab imports, its investment signals an important shift toward securing raw materials amid evolving market dynamics, potentially reshaping the stainless steel manufacturing landscape in Korea and beyond.
Note: This article has been published in accordance with a content exchange agreement between SteelDaily and BigMint.
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