Estimates target 5 million tonnes as the amount of scrap metal that may be imported after the rules change.
According to the Indonesian industry minister, Agus Gumiwang Kartasamita, the rules for scrap metal used as raw material will be lightened, hoping this will lead to a reduction in imports of steel billets.
Despite anti-dumping duties applied on many types of steel products from China and other countries, the Indonesian Iron and Steel Association stood firm that imports have burdened their business’ bottom line. Those from China, in particular, seemed to have created the largest impact.
Kartasasmita relayed that the industry is currently using less than half of it’s capacity with companies having issues attaining materials for production.This has been an extensive problem, and is harming the country’s industrial output.
If the country’s mills can increase their utilization rates, they can supply 70 percent of domestic steel product demand, he said.
Scrap metal is currently included in the government’s list of dangerous and poisonous waste but, Kartasasmita said, “We’ve decided for scrap metal, we will relax their imports … because we can see the need for scrap metal in the domestic market. This will support the production of billets.”
Kartasasmita did not say when the new rules would take effect.