Indonesia to Become World’s Second Largest Stainless Steel Producer

SEATTLE (Scrap Monster): The annual conference hosted by the International Stainless Steel Forum (ISSF) said that Indonesia is likely to overtake India and Japan to become the world’s second largest stainless steel producer, after China. This is mainly due to increasing number of Chinese firms setting up capacities in Indonesia. It must be noted that Indonesia is currently the world’s fourth largest stainless steel producing country in the world.

The Indonesian melt shop production during the current year is expected to record notable surge by 75% year-on-year to total 4.2 million tonnes (Mt). On the other hand, the Indian production is predicted to rise slightly from 3.2 Mt in 2020 to 3.5 Mt this year. The Japanese production is likely to remain more or less flat.

According to K.K. Pahuja, President, Indian Stainless Steel Development Association (ISSDA), Indonesia already has stainless steel capacity of 5.5 Mt ready with it. The withdrawal of export tax rebate by the Chinese administration will curb stainless steel exports from that country. On the other hand, the exports from Chinese companies in Indonesia are poised to rise significantly, he added.

The majority of stainless steel production from Indonesia will be exported as the domestic demand in the country is estimated at only around 0.2 Mt.

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