Indonesia’s steel consumption reached 15.1 MnT in 2018, up by 11% Y-o-Y, SteelMint learned from SEAISI conference being held in Bangkok, Thailand. Finished steel production moved up to 10 MnT in CY’18, higher by 25% Y-o-Y.
HRC production stood at 3.62 MnT in CY’18. As per reports this HRC production level can fulfill almost 50% national consumption and also increase export quantity and reduce import quantity. General structure is still the biggest consuming sector of HRC and Plates in Indonesia, followed by re-rolling industry and then automotive industry in the third place. Steel import quantity 7.6 MnT is 50% of national consumption, it is one of main cause national finished goods capacity is lower than its installed capacity.
Rebar production and consumption in 2018 increased by 66% & 50% against previous year. However imports of rebar remained high at 0.51 MnT.
Major steel mills ramping up their steel capacities are as follows:
1. PT Krakatau Steel- Incorporated as Trikora Iron Steel Project in year 1970 and then renamed as PT Krakatau Steel; is a prominent steel producer in Indonesia having production capacity of 3.15 MnT with wide range of products like Hot Rolled, Cold Rolled and Wire rod coils.
Thus company in its expansion plans have started operations of new blast furnace in CY’19 having the capacity of 1,50,000 MT. The HSM#2 having capacity expansion of 1,50,000 MT faced mechanical complication in Apr’19.
However CRM Reversing Mill with the capacity of 50,000 MT is under planning phase and will be operational in upcoming months.
2. PT Sunrise Steel- The company dealing in Aluminum and Zinc (galvanized) steel is looking forward to completion of its under construction Reversing Mill which will enhance capacity by 1,80,000 MT. Whereas a 1,40,000 MT capacity Galvalume Line became operational this year.
3. PT- Gunung Group- The company with production capacity of 2.8 MnTpa was incorporated in 1980 has been the major steel manufacturer in Southeast Asia.
The company’s Blast Furnace, HSM (in West Java) with 10,00,000 MT capacity along with a 2,00,000 MT of Cold Rolling Mill is under construction.
Outlook for 2019- Based on national economic growth at 5.17%, national steel consumption growth is projected at about 6%. Steel import for HRC, CRC and some WR products might still continue to fulfil domestic consumption.
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