Highlights
- Indonesia has inaugurated a new 1.5Mt annual output capacity steel plant.
- The new steel plant is designed to produce hot-rolled coils.
- Steel prices are currently touching sky highs due to production curbs in China.
Joko Widodo, the President of Indonesia has inaugurated a new 1.5Mt annual output capacity steel plant on Tuesday. The plant is anticipated to reduce the country’s steel imports, increasing the reliance on its own production.
The new steel plant is designed to produce hot-rolled coils and it is controlled by state-owned PT Krakatau Steel. The capacity of the plant is expected to increase by up to 4Mtpa. Steel prices are currently touching sky highs due to production curbs in China, as a part of the nation's long-term goal to attain carbon neutrality. China's steel production in August slipped to 83.24Mt in August. The robust demand for manufactured goods including cars, cans, pipes, and appliances, and a supply gap due to China's production curbs has drove the steel prices to record high levels.
Bottom Line
The current rise in the global steel prices is underpinned by China's production curbs on environmental concerns and huge demand for steel in the market. Meanwhile, Indonesia has inaugurated a new steel plant with a 1.5Mt annual capacity.