[SMM’s Weekly Review of the Indonesian Market] Some Steel Price Reductions in Indonesia to Align with Buyer Preferences

According to the World Steel Association, global crude steel production across 70 countries decreased by 1.2% year-on-year to 144.2 million tonnes in August 2026. Production in the European Union (27) decreased by 1.0% to 8.9 million tonnes, while output in the Middle East declined by 4.6% to 3.7 million tonnes. Conversely, North American production provided a structural bright spot, increasing by 3.9% to 9.4 million tonnes.

Mexico's Ministry of Economy has announced the final results of its sunset review on anti-dumping duties on hot rolled steel imports originating from Russia and Ukraine, deciding to extend the measures for another five years after concluding that their removal would likely lead to a recurrence of dumping and injury to the domestic industry. The duties remain at 21% for Russia and 25% for Ukraine, applying for five years from March 29, 2025. The measure covers unalloyed and alloyed hot rolled steel with a boron content of 0.0008% or higher, at least 600 mm wide and under 4.75 mm thick. The review was requested by Ternium Mexico and ArcelorMittal Mexico.

[Indonesia] On 25 September 2026, slab prices fell by 5 USD/tonne, and then fell again by 2 USD/tonne, now standing at 483 USD/tonne FOB. This is a long-awaited development and is likely due to several factors, ranging from a complete lack of demand from China – as they have been on holiday since Thursday – to mills seeking new markets and lowering prices to attract buyers. Essentially, they are trying to sell and adapt to buyers’ preferences, which have not been met over the past 2–3 weeks. Buyers should keep a close eye on how this develops, although nothing has happened so far. If prices continue to fall, it is unlikely that buyers will make purchases at this stage.