The Ministry of industry reported during 2020, Indonesia has scrapped steel import by 34 percent and the production jumped by 30.25 percent compared to previous year - Photo by the Ministry Office

JAKARTA (TheInsiderStories) – The Ministry of industry reported during 2020, Indonesia has scrapped steel import by 34 percent compared to previous year, said the government official yesterday. While, the production jumped by 30.25 percent from 8.89 million tones to 11.58 million tones.

Director general at the ministry, Taufiek Bawazier, said in an official statement, the steel imports for slabs, billets and blooms types were 3.46 million tones in 2020, lower than the previous year which reached 4.66 million tones. The decline, also occurred in Hot Rolled Coil per Plate from 1.65 million tones to 1.18 million tones.

While, imports of Cold Rolled Coil per Sheet fell to 591,638 tones in 2020 from a year ago amounted to 918,025 tones. For armored steel, total imports also dropped from 1.28 million tones to 1.02 million tones. This year, the government targeting to lowering the steel import by 50 percent from last year realization.

Bawzier also reported, the capacity production of the national steel industry, reflected in steel raw materials (slab, billet, bloom) in total 13.10 million tones , rose 30.25 percent compared to 2019. In addition, the utilization capacity increased to 88.38 percent from 2019 of 67.86 percent.

End of last year, The European Union (EU) officially suspended the anti-subsidies investigation against hot rolled stainless steel from Indonesia and China. The product is a steel that is produced from grinding stainless steel in a state hot. The decision was made after the European Union Steel Industry Association withdrew application on Sept. 18. The decision set on Nov. 6 and announced officially on Nov. 9, 2020.

For background, in February of this year, the block ordered its customs officials to register flat-rolled stainless steel imports from Indonesia, China, and Taiwan, widening the threat of tariffs on the shipments. European Commission has announced in Regulations 2020/104 and 2020/105, and take effect on Jan. 25, 2020.

Customs authorities will register imports for a period of nine months from the effective date. Registration allows the commission, at the end of the current investigations, to backdate anti-dumping and countervailing duties, if appropriate, to imports during this nine-month period.

The cancellation of this investigation, opens up an opportunities to push the hot rolled stainless steel exports to the Eurozone. According to the statistics bureau data, Indonesia’ Hot rolled stainless steel export reached $2.6 billion in 2019.

US$1: Rp14,300

Written by Editorial Staff, Email: theinsiderstories@gmail.com