- Taiwan stainless imports surge amid rising costs
- Higher nickel costs support export offer increases
Mysteel: Indonesian stainless steel exports enjoyed a notable rebound in March, driven primarily by a sharp increase in shipments to Taiwan and strong demand from the Chinese mainland, according to the latest data from Indonesia Customs.
Total stainless exports by Indonesia worldwide reached some 375,500 tonnes (t) in March, marking a m-o-m increase of 27,300 t or 7.8%. However, on an annual basis, exports contracted by 18,400 t or 4.7% compared to the same month last year.
Hot-rolled coil leads the increase
A significant rise in shipments of stainless hot-rolled coil with a width of or above 600mm accounted for much of the on-month surge in the country’s total exports of stainless products. Export volumes for this category leapt by 42,500 t or 26.3% from February to 203,900 t, the Customs data indicate. This also represented a robust 19.5% increase compared to March last year.
Taiwan emerges as a key growth market
A major highlight of March’s performance was the dramatic increase in exports to Taiwan. Shipments to the region totaled 88,200 t, soaring by 62.2% from February, Indonesia Customs statistics show. Nevertheless, volumes were still 12.2% below the level recorded in March last year.
Within this total, hot-rolled stainless exports stood at 75,600 t in March, rising by a remarkable 63.7% m-o-m and 23.7% y-o-y.
Market sources indicate that Taiwanese stainless steel re-rollers accelerated purchases of hot bands from Indonesia in March, as rising costs of nickel feedstocks prompted Indonesia-based stainless producers to frequently raise their export quotes.
Jakarta’s tightening policies on nickel ore supply have consistently pushed up nickel prices and production costs for Indonesian stainless mills.
Significantly, Taiwanese stainless re-rollers and integrated stainless mills are structurally dependent on imported hot-rolled products, given their high local production costs for these feeds, including high electricity charges and costly stainless steel scrap.
Chinese mainland and Vietnam remain top destinations
The Chinese mainland remained the largest destination for Indonesian stainless exports in March, with volumes reaching 120,700 t, up 8% from the previous month and a substantial 36.3% increase y-o-y, the Customs data show.
Vietnam ranked as Indonesia’s third-largest stainless market following Taiwan, receiving 72,900 t in March, a sharp 24.4% increase month-on-month and an 8.4% rise over the same period last year.
First-quarter cumulative performance
For the January-March quarter, Indonesia’s stainless steel exports amounted to around 1.12 mnt, a marginal decline of 2.1% compared to the same quarter last year, according to the Customs data.
This article is published as part of a content-exchange agreement between Mysteel and BigMint.
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