Indonesia has become the preferred destination for many hot-rolled steel buyers in the EU as they seek to fill the shortfall in steel supplies caused by the European Commission's revised import protection measures and new anti-dumping duties.
Purchasing managers across the continent report that this month, changes in EU trade safeguards, combined with recently announced anti-dumping duties on imports from Egypt, Japan and Vietnam, have limited their purchasing opportunities outside the EU.
The volume of unalloyed and the volume of supplies of hot-rolled sheets and strips from other alloys to Europe in 2024 exceeded 400,000 tons, which is 76.1% more than in the same period last year. These volumes are expected to continue to grow after the country designated as a "developing country" in the category of EU protective measures remained free of any import quotas or additional duties in accordance with the changes introduced on April 1.
In the latest episode of the Steel podcast on the revised EU safeguards, Chris Jackson, member of the European Parliament and steel market analyst, said: "At the beginning of the year, it became increasingly clear that the people we talked to were scouring the world for alternative sources[of hot rolled coil]. There has been a lot of talk about Indonesia, and we are starting to see that it is bearing fruit, thanks to supplies to the shores of Europe."
Indonesia's rapid growth
Among individual countries for which the OECD provides GDP forecasts, Indonesia will rank second in the world in terms of economic growth in 2025 and 2026 (at 4.9% and 5%, respectively), behind India.
The output of Indonesian steel producers reflects this growth trend. According to worldsteel, between 2016 and 2024, the country's steel production increased from 4.75 million tons to about 17 million tons. However, a significant part of the domestic capacity is still underutilized. Indonesian steel mills remain focused on maximizing export opportunities wherever possible.
EU roll buyers report that the Indonesian hot-rolled roll (with the required CE marking and 3.1 inspection certification) is sold mainly to pipe manufacturers and those engaged in the production of hollow profiles. Agreements have recently been concluded for June deliveries either to Southern Europe or to Gdansk, Poland. Import options from Malaysia and Thailand, two other countries exempt from EU duties, are also being widely considered.
Manufacturers
