Indonesian stainless steel exports dropped in September on weaker sentiment in local Asian market, mainly in China. The most significant decline was seen in exports of semis.
In September, Indonesian STS exports fell by 17% to 316.5 kt over the month. In an annual comparison, the volume was reduced by 17%. Indonesia is a traditional supplier of semis and feedstock for other Asian STS makers, as it has cost advantages due to enormous reserves of cheap raw materials, including nickel ore. In September, weakening market sentiment in major STS-making areas of Asia (mostly in China) led to cooled-down demand for billets, slabs, and HR sheets.
Supplies reduction to China, India, and Vietnam had the most impact on the overall result. Shipments to these three countries lowered by 33%, 17%, and 23% to 125 kt, 46 kt, and 26 kt, respectively. These declines were partially compensated by higher supplies to Taiwan, Malaysia, and Turkiye.
In January-September, the country’s exports of STS amounted to 3 million t, down 542 kt or 15% from the same period of 2022.
The Indonesian exports are likely to lower further during Q4, as more production cuts were announced by numerous mills in China, mostly in the flats segment. Indian STS producers and re-rollers are also suffering from tight margins (or even losses), which made them plan maintenance and output cuts in October-November. As a result, Asian giants’ appetite for raw materials and semis would cool down.
Post time: Nov-21-2023
