Indonesia Steel Industry Report - 2014

USD $449.00
Indonesia Steel Industry Report - 2014

This report profiles Indonesia’s steel industry, discussing market trends and outlook through 2013 and into 2014 and beyond. The report also highlights key leading players in the sector including PT Krakatau Steel, PT Bakrie and Brothers, PT Gunawan Dianjaya Steel, and PT Jaya Pari Steel.

Despite the fact that Indonesia is the second top steel consuming country in ASEAN with a market share of 20%, its steel demand showed the slowest growth rate in the region in 2013. Domestic steel consumption grew by 1.5% to 12.7mn tonnes in 2013, after recording double digit growth in 2012, in line with lower economic growth. Moreover, the increase in consumption did not benefit the local producers. Domestic steel production fell by 5.6% to 5.1mn tonnes. As local producers supply only about half of the country’s steel demand, Indonesia relies heavily on imported steel products to meet the increasing domestic demand. The largest country of origin for imports is from Japan, China and Russia.

Total import of iron and steel products increased marginally by 0.7% to a record-high of 12.8mn tonnes in 2013. Imports of hot-rolled steel products (wire rods and sections) and semi-finished products (slab and billet) command the largest share. Meanwhile, total export volume of iron and steel products dropped further by 23% to 0.80mn tonnes.

2014 will still be another challenging year for the domestic steel industry with competition from cheap Chinese imports, declining steel prices and depreciation in the Rupiah remaining a major area of concern for domestic steel producers.

Key Points:

• The increase in Indonesia’s steel consumption in 2013 was supported more by import, which grew to a record-high of 12.8mn tonnes, and not from domestic production.

• Domestic steel production declined by 5.6% y/y to 5.1mn tonnes in 2013. Bars and wire rods are the primary steel products and account for the largest annual production output of the industry.

• The gross domestic product (GDP) of the Indonesian iron and basic steel industry has increased over time in line with strong domestic infrastructure growth. The industry’s GDP rose by 7.7% y/y to IDR 9.5tn as of June 2014.

• The biggest obstacle that restricts the domestic steel industry is the declining international steel prices as a result of lower global steel demand while the production remains high. This, together with competition from cheap Chinese steel imports and depreciation of the Rupiah against the USD has squeezed industry players’ margins.


Table of Contents

1. Industry Profile
1.1 Global overview
1.2 ASEAN overview
1.3 Country overview
1.3.1 Steel market situation
1.3.2 Consumption
1.3.3 Production
1.4 Industry performance
1.5 Capacity utilisation
1.6 Steel scrap

2. Market Trends and Outlook
2.1 Imports and exports
2.2 Indonesian National Standard (SNI)
2.3 Policy and regulations
2.3.1 Anti-dumping
2.3.2 Safeguards
2.3.3 Tariffs
2.4 Raw material and steel prices
2.5 Impact of China
2.6 Investment
2.7 Market outlook

3. Leading Players and Comparative Matrix
3.1 Leading Players
3.1.1 PT Krakatau Steel (Persero) Tbk (KRAS)
3.1.2 PT Bakrie and Brothers Tbk (BNBR)
3.1.3 PT Gunawan Dianjaya Steel Tbk (GDST)
3.1.4 PT Jaya Pari Steel Tbk (JPRS)
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables and charts
Table 1: Global apparent steel use (ASU) for finished steel products (2013–2015)
Table 2: Global crude steel production (mn metric tonnes) (2010–8M2014)
Table 3: Top 10 steel producing countries (mn metric tonnes) (8M2014)
Table 4: Top 10 apparent steel use per capita countries in 2013 (kg)
Table 5: ASEAN apparent steel consumption (metric tonnes) (2013 vs. 2012)
Table 6: Indonesia apparent steel consumption of total steel products (metric tonnes) (2009–2013)
Table 7: Indonesia apparent steel consumption by finished steel products (metric tonnes) (2009-2013)
Table 8: Total production of hot-rolled steel products (metric tonnes) (2012 vs. 2013)
Table 9: Total production of crude steel products (metric tonnes) (2012 vs. 2013)
Table 10: Total production of finished steel products (metric tonnes) (2009–2013)
Table 11: Scrap demand and supply (metric tonnes) (2012 vs. 2013)
Table 12: Indonesia imports of iron and steel products (metric tonnes) (2009–2013)
Table 13: Imports of hot-rolled steel products and semi-finished products (tonnes) (2012 vs. 2013)
Table 14: Indonesia exports of iron and steel products (metric tonnes) (2009–2013)
Table 15: Exports of hot-rolled steel products and pipes & tubes (tonnes) (2012 vs. 2013)
Table 16: Indonesia’s import tariff rates for major steel products
Table 17: Several capacity expansions of Indonesian steel company (2013-2016)
Table 18: Krakatau Steel’s operational highlights (2012 vs. 2013)
Table 19: Krakatau Steel financial highlights (2009–1H2014)
Table 20: Bakrie & Brothers financial highlights (2009–1H2014)
Table 21: Gunawan Dianjaya Steel financial highlights (2009–1H2014)
Table 22: Jaya Pari Steel financial highlights (2009–1H2014)
Table 23: Leading players’ comparison of key financial ratios

Chart 1: Top 10 steel producing companies in 2013
Chart 2: ASEAN production, import, export and consumption (2007-2013)
Chart 3: Indonesia steel production and consumption (2003-2013)
Chart 4: Indonesia import and export of total iron & steel products (2003-2013)
Chart 5: Steel consumption by industries
Chart 6: Hot-rolled steel production (2008-2013)
Chart 7: Crude steel production (2008-2013)
Chart 8: GDP of iron & basic steel industry (current price) (Jun 2010-Jun 2014)
Chart 9: Contribution of iron & steel industry to national GDP (2008-6M2014)
Chart 10: Crude steel capacity utilisation rate (2004-2013)
Chart 11: Quarterly import and export value of total iron & steel (Q2/2011-Q2/2014)
Chart 12: Global iron ore production (2003-2013)
Chart 13: Iron ore monthly price (Sep 2009-Sep 2014)
Chart 14: Forecast of coal consumption (2010–2030)
Chart 15: China crude steel capacity vs. supply vs. demand (2008–2013)
Chart 16: Investment estimate of Indonesian iron & steel industry (2009-2014)
Chart 17: Indonesia steel consumption trend (2001-2014)

Number of pages: 35
Release Date: Fri, 17 Oct 2014