Key Indonesian STS CR Plant to Halt Operations for Two Months

Indonesian STS CR

An Indonesian stainless steel cold-rolled (STS CR) plant owned by Tsingshan Holding Group is set to suspend production for two months. This decision, amid anti-dumping measures from various countries, is expected to affect the peak season prices of Asian STS CR products.

Multiple Indonesian media outlets reported that the Yongwang STS CR plant, part of the Chinese-owned Tsingshan Holding Group, will halt production from June to August for two months. Local news sources attribute this suspension to a combination of large-scale production process inspections and worsening profitability due to local nickel supply issues. These challenges were exacerbated by recent incidents at the Tsingshan nickel smelter, including a significant accident last December followed by another incident in June of this year.

Some reports suggest that the plant's production halt could extend up to 80 days. This suspension is expected to lead to a reduction in low-priced Indonesian STS CR supplies during the early summer peak season in July, resulting in a partial decrease in the availability of cheap Southeast Asian STS products.

The STS CR plant in question has an annual production capacity of 700,000 tons. Enhanced pickling and annealing processes implemented last year have further increased the plant's production standards and processing volumes.