China becomes Indonesia's main source of stainless steel exports

In May 2024, Indonesia's stainless steel exports to China increased significantly to about 157,800 mt, up 22.36% month-on-month and 60.37% year-on-year. This increase of around 28,800 mt from April underscores the growing demand for Indonesian stainless steel, particularly in China.

While exports to countries such as Taiwan, Vietnam, and India declined, other markets such as Italy and Turkey experienced notable growth. Exports to Italy increased by about 30.32% to about 3,100 mt and to Turkey by 32.94% to about 4,100 mt. This growth in European markets can be attributed to lower operating rates and increased consumption in local stainless steel mills due to high energy and raw material costs.

South Korea also led the demand for Indonesian stainless steel, with exports rising 69.69% month-on-month to around 4,300 mt. This increase coincides with the ongoing maintenance work at POSCO's No. 4 blast furnace, suggesting that short-term demand from South Korea may continue to increase until local production picks up again.

Indonesia's main exports were HRC, CRC, billet, wire rod and scrap.