Indonesia relies on Chinese imports for most of its steel demand

social dynamics5hrs agoupdate PrintEnterprise

0 0

The Undersecretary of Industry recently stated at a working session of the Sixth Committee of the Congress.There is a serious supply-demand imbalance in Indonesia's steel industry, with about 55% of domestic demand relying on imports, most of which comes from China, while the capacity utilization rate of the domestic steel industry is only about 50%, resulting in a large amount of idle capacity.

The root of the problem isSingle production structureThe domestic steel production is mainly concentrated in the construction and infrastructure sectors, automotive, shipbuilding, heavy machinery, etc.High value-added areasLimited production of specialty steel is required, and these areas have agreater market demandIn addition, the Indonesian steel industry is facing a number of challenges. In addition the Indonesian steel industry is facingAging of production equipmentproblems, with most producers using outdated machinery and technology.Insufficient environmental friendlinessThis affects product quality and production costs and reduces the competitiveness of the industry.

Data shows that in 2024, Indonesia's steel production ranked 14th in the world at 18 million tons, an increase of 1,10% from 2019, but the total global steel production was 1,084 million tons, with China being the largest producer, with a production share of 53.3%, followed by India. Indonesia's steel industryAverage capacity utilization was 52.70%The

# Social Dynamics