The high cost of raw materials for the steel industry forces business actors to reduce production and some are no longer operating, this condition is experienced by almost half of the light steel IKM players.
Jakarta (ANTARA) – Chairman of the Indonesian Lightweight Steel Industry Association (Persibri), Liang Wali, revealed that there is a possibility that light steel business actors will find it difficult to obtain raw materials due to soaring steel prices.
“The high cost of raw materials for the steel industry forces business actors to reduce production and some are no longer operating. This condition is experienced by almost half of the light steel IKM players,” said the Wali in Jakarta, Friday.
He explained that as many as 45 members of the small and medium industry (IKM) who are members of this association have also found a limited supply of domestic raw materials for zinc-aluminum coated steel (BjLAS).
“The 100 percent increase in steel prices in the world is a very serious threat for us as national light steel IKM business actors, especially since domestic producers of BjLAS raw materials have not been able to meet overall demand,” he said.
Currently, he estimates that demand for steel in 2021 could reach 1.8 million tonnes-2 million tonnes in line with improving economic activity, or higher than 2020, which only reached 1.1 million tonnes with part of the supply being met from within the country.
“This condition must be addressed proportionally and wisely so that the government as the regulator in charge does not take wrong steps which will kill the light steel industry,” he said.
On the same occasion, light steel IKM business actor, Fajar Adriansyah, said the condition of the scarcity of raw materials could continue if the anti-dumping policy on the BjLAS sector was implemented by the government.
According to him, the discourse on the application of anti-dumping import duties on the steel sector could increase the price of raw materials for the light steel industry several times and indirectly affect hundreds of steel workers.
“Without anti-dumping, the current price is very expensive, so instead of the government thinking of policies that make it difficult for business actors, they should focus on fulfilling industrial raw materials which are currently expensive and experiencing scarcity,” he said.
Also read: The Ministry of Industry encourages the development of a circular economy for steel slag products
Also read: Legislators reminded that cheap imported steel would threaten the domestic industry
Also read: Krakatau Steel: The national steel industry still has a big opportunity
Pewarta: Satyagraha
Editor: Faisal Yunianto
COPYRIGHT © ANTARA 2021
–
