Help Desk -
9958816305, 9810335381

Tsingshan Indonesia Shakes up Stainless Steel Markets in South East Asia - Wood Mackenzie

Steel News - Published on Wed, 17 Jul 2019

Image Source: Drilling Contractor
According to Wood Mackenzie, shockwaves from Tsingshan's new stainless steel hub in Indonesia are reverberating across South East Asia and beyond. Mr Sean Mulshaw, Wood Mackenzie Principal Analyst said that “Competitively priced exports of Indonesian stainless product have provoked varying reactions from stainless steelmakers in the destination countries. China has warned off Tsingshan with anti-dumping duties, Taiwan has willingly taken Indonesian stainless instead of melting its own, South Korea is changing its mix of stainless grades and fighting a proposal for a new Tsingshan cold rolling mill, India is partnering with Tsingshan in a new CR venture that is about to enter production and Europe is worried that more Indonesian stainless might come its way."

Mr. Mulshaw said that “Normally, the start up of a new 3 million tonne per annum stainless melt shop would be good for nickel demand and generally positive for prices. In this case, however, the ramp up in production has been partly offset by cuts in output elsewhere, with more likely to follow. The Morowali mill is regarded as the lowest cost stainless operation in the world, primarily due to its integration with, and hot metal transfer of, nickel pig iron. Its stainless semi-finished products of slab and hot-rolled coil are both very competitively priced. As a result, global producers are likely asking: why continue to melt stainless when I can purchase these lower priced semis and roll them instead?.”

Tsingshan’s stainless complex in Morowali, Indonesia, entered production in mid 2017 with a capacity of 2 million tonne per annum. In 2018, this was increased to 3 million tonne per annum . A third line was commissioned but has yet to start commercial operations.

When Tsingshan started up the Morowali stainless complex in July 2017, output was principally shipped to China. By the end of March 2018, almost 1 million tonnes of stainless steel slab and HRC had been exported to the country, however the market was not strong enough to absorb it.

Source :

Posted By : Sanju Moirangthem on Wed, 17 Jul 2019
Related News from Steel segment