Indonesia: Billets exports rebound in Aug'21 on active Chinese buying

Indonesia recorded a 37.47% m-o-m rise in its billets export volumes in Aug'21. The volumes stood at 0.25 million tonnes (mn t) in August as against 0.18 mn t in Jul'21, according to customs data compiled by SteelMint.

China leading importer: China continued to be the absolute leader in importing steel billets from Indonesia at 0.18 mn t in Aug'21. The country retained its top importers' position with a massive 157% m-o-m increase as compared to 0.07 mn t in Jul'21.

The Philippines and Taiwan both acquired the second position in the top importers' list with 0.03 mn t of steel billets each. However, billets imports from Indonesia to the Philippines were largely stable in Aug'21 while, on the other hand, imports to Taiwan witnessed a significant rise of 200%, m-o-m.

Jan-Aug'21 billets exports jump three-fold: Interestingly, billets exports from Indonesia have increased sharply from 0.61 mn t in Jan-Aug'20 to 2.02 mn t in Jan-Aug'21, a whopping 230% increase, y-o-y.

Exports to China have almost doubled from 0.6 mn t in Jan-Aug'20 to 1.13 mn t in Jan-Aug'21. Other major importers of steel billets from Indonesia in this period were again Taiwan and the Philippines with 0.22 mn t and 0.17 mn t, respectively.

PT Dexin fires second BF: On 3 Feb'21, PT Dexin Steel Indonesia fired up the second of its two 1,780 cu m blast furnaces at Morowali Industrial Park, Central Sulawesi, which was initially targeted to launch in May 2020 but was pushed back due to the coronavirus pandemic.

Apart from the 2*1 780m3 blast furnace that was fired in Mar'20, Dexin ignited another 1,780 cu m blast furnace in Feb'21. A third BF, now under construction, is scheduled to begin operations in Dec'22. The steelmaker aims to start operating the third BF in Dec'22, which, when completed, will enhance its total output capacity to 6 mn t/year.