- Annual capacity to reach 6 mil mt

          - 700,000 mt additional steel output expected in H2

          PT Dexin Steel Indonesia plans to fire up its new 1,780 cu m blast furnace at the Morowali Industrial Park in Central Sulawesi in late August, a company spokesperson said in an email response to S&P Global Commodity Insights queries July 17.

          The new No. 3 blast furnace has a designed annual steel output of 2 million mt. The furnace will reach full capacity one month after ignition, raising its expected crude steel output by 700,000 mt in the second half of 2023 as compared with the first half.

          The expected demand for raw materials, including iron ore and coking coal, is expected to grow 5.4 million mt annually.

          “The company decided to establish the No. 3 blast furnace after detailed research, and the company believes that Indonesian domestic and export demand can support the expansion project,” the company spokesperson said.

          After the expansion, Dexin Steel will have an annual capacity of 6 million mt. Dexin’s HRC expansion project with an annual capacity of 4 million mt will also be completed by June 2024.

          Prior to the completion of the hot rolling production line expansion, the company will focus on selling slabs, billets, wire rods and bars, the company spokesperson said.

          Some market participants expressed concerns about oversupply in the region. Platts assessed 5SP billet at $517/mt CFR Manila July 17,  unchanged on the day, S&P Global data showed