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View all search resultsRI steel industry still affected by global losses: Association
Indonesian Iron and Steel Industry Association (IISIA) executive director Hidayat Trisepoetro said on Tuesday that the global steel industry was in alarming condition, reflected by huge losses reported by leading steel manufacturers around the world
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ndonesian Iron and Steel Industry Association (IISIA) executive director Hidayat Trisepoetro said on Tuesday that the global steel industry was in alarming condition, reflected by huge losses reported by leading steel manufacturers around the world.
'The losses affecting the world steel industry are the result of the global economic condition that did not improve in 2013,' he said in Jakarta on Tuesday, as quoted by Antara.
With such a condition, Hidayat said, the domestic steel industry could do nothing but try and prevent from suffering bigger losses.
He said that up until now, the IISIA had yet to predict when the steel industry would recover, as it depended on global economic conditions.
In the current global market, the price of raw steel materials is high while the global price of steel has continued to fall.
At Krakatau Steel, for instance, the price of hot-rolled coil (HRC), which is the company's prime commodity, has depreciated by 13 percent, followed by other products comprising cold-rolled coil (CRC) by 9 percent, wire rod 11 percent, and profile steel 13 percent, due to the current state of the global steel industry and fluctuating US dollar exchange rate.
Hidayat said the government should have taken preventative measures to ease pressures, including tackling unfair trade practices conducted by several steel producers.
Many global steel manufacturers are marketing their products to developing countries at far lower prices.
Trust Securities analyst Reza Priyambada said overcapacity, especially in China'home to the largest steel industry in the world, had triggered declining demand for steel and a sharp decline in global steel prices.
'Global steel prices will plunge further and will eventually affect the domestic steel industry,' he said.
Arcelor Mital suffered US$193 million in losses in the third quarter of 2013 while Nippon Steel Sumitomo Japan saw losses amounting to $1.5 billion, followed by Tata Steel India $1.3 billion, Ansteel Group China $1.3 billion, in addition to 18 other companies, Platts Steel Business Briefing and Bloomberg Business Week reported.(ebf)
