Indonesian Stainless Steel Cold Rolling Mill Halts

Indonesian Stainless Steel Cold Rolling Mill Halts Production

Production Suspension Announced

14 June 2024 – A major Indonesian stainless steel cold rolling mill will suspend production for several months. Following another explosion at a nickel smelter in Indonesia’s Morowali Industrial Park, chrome ore and ferrochrome prices have surged significantly in recent weeks.

Details of the Production Halt

The Indonesian stainless steel cold rolling mill, with an annual capacity of 700,000 MT, announced it will cease production for at least two months. Some reports suggest the halt may extend to 80 days.

Speculation on Reasons for the Suspension

There is widespread speculation about the reasons behind the production halt. Possible causes include regular maintenance and a shortage of nickel ore in Indonesia, affecting the availability of input materials.

Tsingshan Nickel Smelter Explosion

According to Asian media, another explosion has occurred at the Tsingshan Group’s nickel smelter in the Indonesia Morowali Industrial Park (IMIP), injuring at least two workers. A previous explosion at the same plant in December 2023 resulted in several fatalities. Reports indicate that the latest explosion was caused by similar circumstances as the previous incident.

Chrome Ore and Ferrochrome Prices Surge

Prices for chrome ore from South Africa have increased by up to 6.2% since mid-May 2024. This rise is attributed to high demand from China’s stainless steel industry, which has imported significantly more chrome ore and ferrochrome from South Africa.

Turkish Chrome Ore Prices Also Rise

Turkish chrome ore prices have increased by around 2.8% since early June. Chrome ore lump prices in South Africa have risen by just under 2.6%, while those from Turkey have jumped by approximately 4.8%. This significant increase is reflected in Asian ferrochrome prices, which have recently risen by over 2.2% in China.