Due to the Chinese government's policy, various steel mills were actively investing in the Southeast Asian market. Stainless steel manufacturers have chosen to build factories in Indonesia, which has led to a surge in stainless steel production in Indonesia.
It not only impacted the Taiwan market, but also global markets, such as China, South Korea and Europe. The competitiveness of Indonesian stainless steel was attributed to its laterite nickel ore as the main production base, which can greatly reduce production costs.
According to statistics, the output of stainless steel in Indonesia in 2017 was about 600,000 tons, of which 410,000 tons were exported to China, which reduced the output of stainless steel in China in the second half of 2017. In 2018, the capacity will be fully expanded to 3 million tons.
Indonesia's new stainless steel production has become a public enemy in the global stainless steel market. Not only has China already imposed anti-dumping sanctions, but Europe has also banned imports of Indonesian products. South Korea has even refused Indonesia Tsingshan to set up a factory in South Korea.