Indonesia’s new large steel mill PT Dexin Steel with 3.5 million mt per year full capacity has sold its first export batch of billet to the export market as it is going to start operation next week and is collecting orders for February shipment locally and abroad, SteelOrbis learned from market sources on Thursday, January 9.
A deal has been done to the Philippines at $445/mt CFR this week and, though the mill has not confirmed this information by the time of publication, most traders and customers in Southeast Asia have heard about the contract. The volume is estimated at 10,000 mt. “They have started to offer for February delivery [in the local market]. Production has not started yet, but is planned for January 18,” an Indonesian source has told SteelOrbis.
PT Dexin Steel will produce billets, wire rods, slabs, and bars, according to Hamid Mina, managing director of PT Indonesia Morowali Industrial Park, one of the owners of the steel mill. China’s Delong Holdings owns a 45 percent stake in PT Dexin Steel, Shanghai Decent holds 43 percent and PT Indonesia Morowali Industrial Park has 12 percent equity.
The project will be launched in a few separate stages. The total investments in the first stage were about $950 million. The focus in the initial stage will be on production of billet and wire rod.
