Indonesia Will Add New Strip Production Next Year, And Hot Coils in Southeast Asia Will Start To Gain Momentum.

According to Kailan Consulting, Indonesia will have a new strip steel production capacity put into production next year. New Asia International will start HRC production in the first quarter, and veteran steelmaker Dexin Group will start HRC production in the third quarter of 2024.

A spokesman for New Asia said the company's equipment installation work in Sidoarjo, eastern Java, is nearing completion. "We will put it into operation in March at the latest," he said. The new hot-rolled coil mill has an installed capacity of 1.5 million tons per year and can produce hot-rolled coils with a width of 600-940mm and a 1.5-12mm thickness.

In addition, there will be a cold rolling mill with an annual output of 850,000 tons (width 600-940mm, thickness 0.2-3mm) and pickling and metal coating production lines.

The plant will also produce 50,000 tons of black annealed strips and bright annealed strips per year, as well as 300,000 tons of galvalume and galvanized coils.

The company will source slabs globally "based on quality and price," the spokesman said.

New Asia's factory is 40 kilometers away from the city of Surabaya, and some of the hot-rolled coils that are not used internally will be sold. The company plans to adopt a sales strategy of 70% domestic sales and 30% exports. PT Java Pacific Indonesia holds a 50% stake, Xinya Metal Products holds a 40.5% stake, and Tianjin Zhongzhong Technology Engineering Co. holds a 9.5% stake.

On the other hand, DXN Group is installing a hot strip rolling mill with an annual capacity of 4 million tons and plans to start hot-rolled steel production at its integrated steel plant in Morowali, Central Sulawesi in the third quarter of next year. roll. The company is in no rush to build the mill.

"The overall market is developing slowly," a company source said. The plant will produce hot-rolled coils with widths of 900-1,600 meters and thicknesses of 1.5-19 mm.

ASEAN's leading steelmaker recently commissioned its third 1,780 cubic meter blast furnace and expanded steel production from 4 million tons/year to 7 million tons/year in September. The

plant's products include slabs, billets, wire rods, and rebar, with the product mix changing according to market demand.

According to trade sources, the mill is very active in the billet and slab export markets.