Krakatau Steel Wary of China`s Mixed-steel in Indonesia

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  • Krakatau Steel

    Krakatau Steel

    TEMPO.CO, Jakarta - State-owned steel manufacturer Krakatau Steel logistics and business development director Ogi Rulino voiced his concern on Indonesia being flooded with steel from China following the U.S. steel import policy.

    He worries that the hefty US steel import tariffs would eventually cause China to switch its focus on the Asian markets, especially Indonesia. “What we are worried about is if China exports their mixed-metals to Indonesia without paying import duties,” said Ogi in a press release following a shareholders’ general meeting (RUPS) on Wednesday, April 18.

    Read: China Warns U.S. It will Defend Own Trade Interests

    Ogi’s concerns are not unsubstantiated considering that mixed-metals that are often used for train railway tracks and heavy machinery are not subjected to import duties. Let alone the fact that the products are not manufactured domestically.

    Meanwhile, in the steel market, the US’ steep import duties are not making Krakatau Steel worried that they would be overwhelmed by China in the US steel market share, considering that China does not import that much to the states, to begin with.

    Read: Krakatau Steel Eyeing for 40 Percent Sales Increase in 2018

    Furthermore, Krakatau Steel marketing director Purwono Widodo expected that the company will face many challenges this year. ”We hope the government can take action to protect domestic steel from the unfair trade,” he said.

    ANTARA