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Try the Free AI Search EngineIndonesian Steel Market Stays Competitive Amidst European Lull: Activity Analysis & Procurement Strategies
Indonesia’s steel sector remains competitive in the European market, despite a seasonal slowdown in Europe. The impacts of this slowdown can be related to observed activity, or lack thereof, at major Indonesian steel plants. Notably, European buyers are showing caution due to the EU’s Carbon Border Adjustment Mechanism (CBAM), as reported in “European HRC imports remain seasonally slow; buyers cautious over impact of CBAM“. Import offers from Indonesia remain competitive as shown in “European steel HRC market still in summer lull; prices dip below mill targets“, but the articles do not establish a direct connection to specific Indonesian plant activity levels.
Overall, the table shows that the mean steel plant activity in Indonesia has fluctuated, with a notable decline from March to July, followed by a slight recovery in August. The Dexin Steel Morowali plant followed a similar trend. The Dexin Steel Morowali plant activity exceeded the mean Indonesian steel plant activity throughout the period from March to June, before dropping below the mean in August. No direct link to the news articles could be established that clearly explained the activity trends.
Steel Plant Name: Dexin Steel Morowali plant
The Dexin Steel Morowali plant, located in Central Sulawesi, operates with a crude steel capacity of 3,500 thousand tonnes per annum (ttpa) using basic oxygen furnace (BOF) technology and a blast furnace (BF) with an iron capacity of 3,040 ttpa. The plant produces finished and semi-finished rolled products, including wire rod, slab, bar, and billet, targeting the building and infrastructure, and automotive sectors. Dexin Steel Morowali holds a Responsible Steel Certification. The observed activity at Dexin Steel Morowali plant experienced a decline from 40% in March to 28% in August. No direct link to the news articles could be established that clearly explained the activity trends.
Evaluated Market Implications
Despite Indonesian HRC offers remaining competitive in Europe, no concrete supply disruptions can be inferred from the provided news and satellite data. The “seasonal lull” reported in “Seasonal lull holds back the growth of the European HRC market, despite ArcelorMittal’s plans to raise prices” may be responsible for the lull in trade, but further analysis is required.
Given these factors, procurement professionals should:
- Closely monitor EU CBAM developments and their potential impact on Indonesian steel imports to Europe, as mentioned in “European HRC imports remain seasonally slow; buyers cautious over impact of CBAM.”
- Actively negotiate prices with Indonesian suppliers, taking advantage of the current competitive landscape and subdued European demand described in “European steel HRC market still in summer lull; prices dip below mill targets“, but be aware that the lack of direct correlation between European market sentiments and Indonesian plant activity makes predictions complex.