Indonesia Steel Industry Report - H2, 2013
This report profiles Indonesia’s steel industry and analyzes market trends through H2 2013. The report also offers a market outlook and a review of the leading players in the sector (among them Krakatau Steel, Bakrie and Brothers, Gunawan Dianjaya Steel, and Jaya Pari Steel), and discusses Indonesia’s position as the ASEAN’s second-largest consumer of steel (in second place between Thailand and Vietnam).
Indonesia’s steel consumption grew at an impressive rate of 14.1% to 12.5mn metric tons in 2012 in line with the growth in domestic steel demand as well as the national economy. As the country with the largest economy and highest population in ASEAN, Indonesia’s share of steel consumption reached 21.3%, making it the second steel-consuming country in the region. But while steel consumption surged in 2012, the growth did not benefit local producers. Total steel production by steel mills in Indonesia in fact declined marginally by 0.1% to 5.4mn tons.
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. Total imports of iron and steel products jumped 30% in 2012 to a record high of 12.7mn tons. Imports of practically all iron and steel products increased. Imports of semi-finished products soared 54% to reach 3.8mn tons, while imports of sections and wire rods also recorded a similar increase, percentage-wise, to touch 1.1mn tons. Total export volume of iron and steel products dropped 25% to 1.0mn tons. The largest source countries for imports are Japan, China, and Russia. The year 2013 has been a challenging one for the domestic steel industry, with competition from cheap imports and fluctuation in the prices of steel and raw materials remaining a major area of concern for domestic steel producers.
Key Points:
Indonesia’s steel consumption grew at an impressive rate of 14.1% to 12.5mn metric tons in 2012 in line with the growth in domestic steel demand as well as the national economy. As the country with the largest economy and highest population in ASEAN, Indonesia’s share of steel consumption reached 21.3%, making it the second steel-consuming country in the region. But while steel consumption surged in 2012, the growth did not benefit local producers. Total steel production by steel mills in Indonesia in fact declined marginally by 0.1% to 5.4mn tons.
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. Total imports of iron and steel products jumped 30% in 2012 to a record high of 12.7mn tons. Imports of practically all iron and steel products increased. Imports of semi-finished products soared 54% to reach 3.8mn tons, while imports of sections and wire rods also recorded a similar increase, percentage-wise, to touch 1.1mn tons. Total export volume of iron and steel products dropped 25% to 1.0mn tons. The largest source countries for imports are Japan, China, and Russia. The year 2013 has been a challenging one for the domestic steel industry, with competition from cheap imports and fluctuation in the prices of steel and raw materials remaining a major area of concern for domestic steel producers.
Key Points:
- This report provides an overview of the market position and financial highlights for the leading domestic producers, including PT Krakatau Steel (Persero) Tbk (KRAS), PT Bakrie and Brothers Tbk (BNBR), PT Gunawan Dianjaya Steel Tbk (GDST), and PT Jaya Pari Steel Tbk (JPRS).
- Among the ASEAN countries, steel consumption in the Philippines, Indonesia and Vietnam saw double-digit growth rates of 17.6%, 14.1% and 13%, respectively.
- The country’s domestic steel production declined marginally by 0.1% y/y to 5.42mn tons in 2012. 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 increased 6.2% year on year to IDR 9.0tn in September 2013.
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 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 (2012–2014)
Table 2: Global crude steel production (mn tonnes) (2010–9M2013)
Table 3: Top 10 steel producing countries (mn tonnes) (9M2013)
Table 4: ASEAN apparent steel consumption (metric tonnes) (2012 vs. 2011)
Table 5: Indonesia apparent steel consumption of total steel products (metric tonnes) (2008–2012)
Table 6: Indonesia apparent steel consumption by finished steel products (metric tonnes) (2008–2012)
Table 7: Total production of hot-rolled steel products (metric tonnes) (2011 vs. 2012)
Table 8: Total production of crude steel products (metric tonnes) (2011 vs. 2012)
Table 9: Total production of finished steel products (metric tonnes) (2008–2012)
Table 10: Scrap demand and supply (metric tonnes) (2012 vs. 2011)
Table 11: Indonesia imports of iron and steel products (metric tonnes) (2008–2012)
Table 12: Imports of hot-rolled steel products and semi-finished products (tonnes) (2012 vs. 2011)
Table 13: Indonesia exports of iron and steel products (metric tonnes) (2008–2012)
Table 14: Exports of hot-rolled steel products and pipes & tubes (tonnes) (2012 vs. 2011)
Table 15: Indonesia’s import tariff rates for major steel products
Table 16: Several capacity expansions of Indonesian steel company
Table 17: Krakatau Steel’s operational highlights (2012 vs. 2011)
Table 18: Krakatau Steel financial highlights (2008–H1/2013)
Table 19: Bakrie & Brothers financial highlights (2008–9M2013)
Table 20: Gunawan Dianjaya Steel financial highlights (2008–9M2013)
Table 21: Jaya Pari Steel financial highlights (2008–9M2013)
Table 22: Leading players’ comparison of key financial ratios
Chart 1: Top 10 steel producing companies in 2012
Chart 2: ASEAN production, import, export and consumption (2006-2012)
Chart 3: Indonesia steel production and consumption (2002-2012)
Chart 4: Indonesia import and export of total iron & steel products (2002-2012)
Chart 5: Steel consumption by industries (2012)
Chart 6: Hot-rolled steel production (2007-2012)
Chart 7: Crude steel production (2007-2012)
Chart 8: GDP of iron & basic steel industry (current price) (2009-2013)
Chart 9: Contribution of iron & steel industry to national GDP (2007-9M2013)
Chart 10: Crude steel capacity utilisation rate (2006-2012)
Chart 11: Quarterly import and export value of total iron & steel (Q1/2011-Q2/2013)
Chart 12: Global iron ore production (2003-2013)
Chart 13: Iron ore monthly price (Oct 2012-Oct 2013)
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)
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 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 (2012–2014)
Table 2: Global crude steel production (mn tonnes) (2010–9M2013)
Table 3: Top 10 steel producing countries (mn tonnes) (9M2013)
Table 4: ASEAN apparent steel consumption (metric tonnes) (2012 vs. 2011)
Table 5: Indonesia apparent steel consumption of total steel products (metric tonnes) (2008–2012)
Table 6: Indonesia apparent steel consumption by finished steel products (metric tonnes) (2008–2012)
Table 7: Total production of hot-rolled steel products (metric tonnes) (2011 vs. 2012)
Table 8: Total production of crude steel products (metric tonnes) (2011 vs. 2012)
Table 9: Total production of finished steel products (metric tonnes) (2008–2012)
Table 10: Scrap demand and supply (metric tonnes) (2012 vs. 2011)
Table 11: Indonesia imports of iron and steel products (metric tonnes) (2008–2012)
Table 12: Imports of hot-rolled steel products and semi-finished products (tonnes) (2012 vs. 2011)
Table 13: Indonesia exports of iron and steel products (metric tonnes) (2008–2012)
Table 14: Exports of hot-rolled steel products and pipes & tubes (tonnes) (2012 vs. 2011)
Table 15: Indonesia’s import tariff rates for major steel products
Table 16: Several capacity expansions of Indonesian steel company
Table 17: Krakatau Steel’s operational highlights (2012 vs. 2011)
Table 18: Krakatau Steel financial highlights (2008–H1/2013)
Table 19: Bakrie & Brothers financial highlights (2008–9M2013)
Table 20: Gunawan Dianjaya Steel financial highlights (2008–9M2013)
Table 21: Jaya Pari Steel financial highlights (2008–9M2013)
Table 22: Leading players’ comparison of key financial ratios
Chart 1: Top 10 steel producing companies in 2012
Chart 2: ASEAN production, import, export and consumption (2006-2012)
Chart 3: Indonesia steel production and consumption (2002-2012)
Chart 4: Indonesia import and export of total iron & steel products (2002-2012)
Chart 5: Steel consumption by industries (2012)
Chart 6: Hot-rolled steel production (2007-2012)
Chart 7: Crude steel production (2007-2012)
Chart 8: GDP of iron & basic steel industry (current price) (2009-2013)
Chart 9: Contribution of iron & steel industry to national GDP (2007-9M2013)
Chart 10: Crude steel capacity utilisation rate (2006-2012)
Chart 11: Quarterly import and export value of total iron & steel (Q1/2011-Q2/2013)
Chart 12: Global iron ore production (2003-2013)
Chart 13: Iron ore monthly price (Oct 2012-Oct 2013)
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)
