Indonesia: Iron And Steel Market 2024

Iron And Steel Market Size in Indonesia

In 2021, after two years of decline, there was significant growth in the Indonesian iron and steel market, when its value increased by 41% to $X. Over the period under review, consumption, however, continues to indicate a mild curtailment. Iron and steel consumption peaked at $X in 2018; however, from 2019 to 2021, consumption failed to regain momentum.

Iron And Steel Production in Indonesia

In value terms, iron and steel production surged to $X in 2021 estimated in export price. In general, production continues to indicate a relatively flat trend pattern. Over the period under review, production hit record highs at $X in 2018; however, from 2019 to 2021, production failed to regain momentum.

Iron And Steel Exports

Exports from Indonesia

In 2021, after two years of growth, there was significant decline in shipments abroad of iron and steel, when their volume decreased by -77.1% to X tons. Over the period under review, exports, however, recorded a mild expansion. The most prominent rate of growth was recorded in 2014 with an increase of 174% against the previous year. The exports peaked at X tons in 2015; however, from 2016 to 2021, the exports remained at a lower figure.

In value terms, iron and steel exports shrank dramatically to $X in 2021. Overall, exports, however, continue to indicate a remarkable increase. The pace of growth was the most pronounced in 2014 when exports increased by 201% against the previous year. Over the period under review, the exports hit record highs at $X in 2015; however, from 2016 to 2021, the exports remained at a lower figure.

Exports by Country

China (X tons) was the main destination for iron and steel exports from Indonesia, accounting for a 97% share of total exports. It was followed by India (X tons), with a 2.5% share of total exports.

From 2012 to 2021, the average annual rate of growth in terms of volume to China stood at +169.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: India (-15.2% per year) and Thailand (-25.5% per year).

In value terms, China ($X) remains the key foreign market for iron and steel exports from Indonesia, comprising 95% of total exports. The second position in the ranking was held by India ($X), with a 3.9% share of total exports.

From 2012 to 2021, the average annual rate of growth in terms of value to China totaled +170.9%. Exports to the other major destinations recorded the following average annual rates of exports growth: India (-3.6% per year) and Thailand (-16.8% per year).

Export Prices by Country

In 2021, the average iron and steel export price amounted to $X per ton, growing by 66% against the previous year. In general, export price indicated prominent growth from 2012 to 2021: its price increased at an average annual rate of +5.1% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, the average export prices reached the maximum at $X per ton in 2018; however, from 2019 to 2021, the export prices stood at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was India ($X per ton), while the average price for exports to China ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to India (+13.6%), while the prices for the other major destinations experienced more modest paces of growth.

Iron And Steel Imports

Imports into Indonesia

After two years of decline, purchases abroad of iron and steel increased by 15% to X tons in 2021. In general, imports, however, continue to indicate a precipitous descent. The pace of growth was the most pronounced in 2017 when imports increased by 262%. Imports peaked at X tons in 2012; however, from 2013 to 2021, imports remained at a lower figure.

In value terms, iron and steel imports expanded significantly to $X in 2021. Overall, imports, however, faced a drastic downturn. The pace of growth appeared the most rapid in 2017 with an increase of 177%. Over the period under review, imports reached the peak figure at $X in 2012; however, from 2013 to 2021, imports remained at a lower figure.

Imports by Country

Japan (X tons), Singapore (X tons) and Russia (X tons) were the main suppliers of iron and steel imports to Indonesia, with a combined 61% share of total imports. These countries were followed by India, Taiwan (Chinese), South Africa and China, which together accounted for a further 39%.

From 2012 to 2021, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by India (with a CAGR of +4.0%), while imports for the other leaders experienced a decline.

In value terms, Singapore ($X), Japan ($X) and Russia ($X) appeared to be the largest iron and steel suppliers to Indonesia, with a combined 61% share of total imports. Taiwan (Chinese), India, South Africa and China lagged somewhat behind, together accounting for a further 28%.

India, with a CAGR of +5.9%, saw the highest rates of growth with regard to the value of imports, in terms of the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the average iron and steel import price amounted to $X per ton, waning by -2.8% against the previous year. Over the period under review, the import price, however, showed resilient growth. The pace of growth was the most pronounced in 2020 an increase of 81%. As a result, import price reached the peak level of $X per ton, and then shrank slightly in the following year.

There were significant differences in the average prices amongst the major supplying countries. In 2021, amid the top importers, the country with the highest price was Singapore ($X per ton), while the price for South Africa ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by China (+12.6%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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