Indonesia: Steel industry sees drop in demand due to COVID-19
Indonesian steelmakers are facing severe impacts caused by the COVID-19 pandemic on their business with the demand having decreased by 90 percent from the normal times.
A machine operates at a steel factory of JFE Steel Galvanizing Indonesia in Cikarang in Bekasi, West Java. (Photo: https://www.thejakartapost.com/)Jakarta (VNA) - Indonesian steelmakers are facing severe impacts caused by the COVID-19 pandemic on their business with the demand having decreased by 90 percent from the normal times.
The low demand is partially due to the large-scale social restrictions (PSBB) imposed by the government to contain the disease outbreak, which has led to the closure of businesses, including major steel-consuming businesses in the automotive and construction industries.
Speaking at a conference on May 20, Tedja Sukmana Hudianto, vice president of the PT Steel Pipe Industry of Indonesia (Spindo) said the drop is very pronounced at the retail front, noting that there’s a decrease in people’s purchasing power and businesses are holding off purchasing plans.
The steel industry is one of the country’s strategic upstream industries, as it provides raw materials for infrastructure, manufacturing, transportation and defense, among other sectors.
South East Asia Iron and Steel Institute (SEAISI) data show that steel consumption in Indonesia rose 11 percent to 15.1 million tonnes in 2018. However, the demand is largely served by imports from China and other countries.
According to Statistics Indonesia (BPS), the country’s imports of iron and steel, accounting for 6.26 percent of Indonesia’s total non-oil and gas imports, dropped 23 percent year-on-year from January to March at 2.12 billion USD./.
You should also see
World economy’s recovery drives Vietnam’s exports
With the recovery of the world market and increasing orders, Vietnam's import and export activities in the first quarter of 2024 prospered and achieved positive results.
See more
World
Thailand expects wave of tourists during Golden Week
The Tourism Authority of Thailand (TAT) estimates that about 996,000 foreign tourists will visit the Southeast Asian country between April 26 and May 5, known as the Golden Week holidays in Japan, during which Chinese tourists also prefer to travel overseas.
World
Argentinian media praises Dien Bien Phu Victory
Argentinian newspapers have called Vietnam's Dien Bien Phu Victory (May 7, 1954) a symbol of the national liberation movement of oppressed and colonialised peoples worldwide.
World
Laos speeds up granting licences to foreign workers
Laos's Ministry of Labour and Social Welfare plans to issue visas to illegal foreign workers and extend permits to legal ones so that they can continue to work in the country.
World
Argentinian scholar praises Vietnam’s April 30, 1975 victory
The complete reunification of Vietnam on April 30, 1975 was an extremely significant event in the history of the country and the world, opined a scholar from the Institute for International Relations at the National University of La Plata, Argentina.
World
Malaysia tackles food security challenges
Empowering local communities in the agriculture sector to attract young people to this field is one of the measures taken by Malaysia to address labour shortage while also contributing to tackling challenges in food security.
