20 October 2023 – Indian stainless steel group Jindal seems to be thinking aloud about ending its stainless steel production in Indonesia after recent business figures that fell well short of expectations. And scrap demand in Taiwan is up more than 34% month-on-month in September.
Indian stainless steel giant in trouble again?
According to media reports, the Indian stainless steel company Jindal seems to be thinking aloud about ending its activities in Indonesia and dismantling its production facilities there. The economic situation seems to be forcing the company to take this obviously painful step.
Latest annual report falls short of expectations
Even though the group reports increased domestic sales in its latest annual report, the top management is trying to distract from the fact that the company has otherwise fallen far short of its own expectations.
Once again, however, it is not the group’s own internal grievances that are being complained about, but Jindal is presenting itself as the victim of alleged dumping from China, among other things, and has been working towards government support here for some time.
Global demand for scrap continues to rise
Ferrous scrap is considered the most important raw material in the future of steel production. Especially countries like the United States and Turkey are already cmuch more environmentally friendly in steel production than, for example, the high concentration of blast furnace routes in the member states of the European Union, due to the high share of electric arc furnaces (EAF).
Taiwan imports significantly more scrap in September
The currently increasing demand for scrap is reflected, among other things, in the statistics from Taiwan, where imports in September rose by about 34% compared to the previous month of August and by as much as 56% compared to the previous year. Here, analysts see a significant increase in demand for steel from the construction sector.
Indian EAF crude steel output jumps upwards
Or looking at Brazil, where a lot of scrap is exported and half of the scrap is taken by India alone. In India, in particular, the Crude Steel Output Index has recently increased significantly. The index for EAF production there even jumped by more than 40 points and thus drastically upwards.
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