In May, Indonesian stainless steel exports increased by approximately 0.92% MoM, with exports to developed countries rising [SMM Analysis]

In May 2024, Indonesia exported about 157,800 mt of stainless steel to China, an increase of approximately 28,800 mt MoM, up about 22.36% MoM and about 60.37% YoY.

Among the top ten export destinations in May, exports to China Taiwan, Vietnam, and India decreased MoM, while exports to other countries or regions increased. Overall, May exports recovered but was still below March levels. In May, domestic stainless steel futures and spot prices fluctuated upwards, and market transactions were active. Indonesian exports to Italy and Turkey increased by approximately 3,100 mt and 4,100 mt compared to April, up about 30.32% MoM and 32.94% MoM, respectively. It is understood that local stainless steel mills in Italy and Turkey had low operating rates due to losses from high energy and raw material prices. In Q2, some end-user industries entered the construction period, driving local stainless steel consumption, and imports of stainless steel from China and Indonesia increased. Indonesian exports to South Korea in May increased by approximately 4,300 mt, up about 69.69% MoM, the largest increase in May. In May, POSCO's No. 4 blast furnace, with an annual capacity of 3.1 million mt, was still under maintenance. Entering the active manufacturing season, South Korea's import demand recovered in the short term. It is understood that the maintenance is expected to be completed by late June, but it still takes time to ramp up production. Therefore, short-term demand for Indonesian stainless steel may continue to rise. In June, Indonesian stainless steel production fell, affected by tight raw material supply. In addition, with frequent rainfall, which may impact transportation, it is expected that Indonesian total stainless steel exports in June may decline.

In May, Indonesian stainless steel scrap exports were about 4,100 mt, up about 68.60% MoM but down about 5.09% YoY; stainless steel billet exports were about 121,200 mt, up about 4.04% MoM and about 39.36% YoY; HRC exports were about 163,100 mt, down about 5.86% MoM but up about 44.54% YoY; CRC exports were about 114,700 mt, up about 6.50% MoM and about 24.36% YoY; stainless steel wire rod exports were about 3.23 mt, down about 52.15% MoM but up about 236.70% YoY.