APNI Looks to India to Cut China Dependence for Stainless Steel Exports
The Indonesian Nickel Miners Association (APNI) plans cooperation with India to open new markets for nickel products. Currently, Indonesia sends around 90 per cent of stainless steel production to China. However, APNI aims to shift nearly 30–40 per cent of exports to India. Meanwhile, production capacity must support this transition.
APNI shared the plan during discussions in Jakarta on Monday. The association said diversification would reduce reliance on a single market. At the same time, APNI highlighted the importance of stable and balanced trade partnerships. Observers view India as a fast-growing stainless steel consumer market.
However, APNI pointed to sharp price differences across global stainless steel markets. In China, stainless steel sells at around US $1,500 per tonne. By contrast, prices reach US $2,400 in Europe and nearly US $3,000 in the United States. Therefore, APNI rejected claims of superior efficiency alone.
Instead, APNI blamed incomplete cost structures in Chinese stainless steel production. Notably, buyers ignore the value of associated minerals in nickel ore. Moreover, buyers only price nickel content during ore transactions.
As a result, minerals like iron, chromium, and cobalt generate no direct state revenue. Meanwhile, smelters process these minerals alongside nickel. In particular, nickel pig iron production feeds directly into stainless steel output.
Additionally, APNI explained the hidden value within saprolite nickel ore. Saprolite with 1.5 per cent nickel contains up to 30 per cent iron. It also includes around 1.7–1.8 per cent chromium. Similarly, limonite ore for batteries contains cobalt with a higher market value.
Therefore, APNI estimated an added value of about US $25 per tonne from saprolite minerals. For limonite ore, the value could approach US $60 per tonne. Consequently, APNI warned of significant potential state revenue losses.
Thus, APNI urged the government to adopt broader mineral valuation policies. Finally, the association said reforms would strengthen downstreaming and raise domestic value addition.
