Indonesia relaxes scrap import rules; traders rush into market

Indonesian authorities have extended the deadline for scrap sellers to comply with new, strict import regulations until the end of the year, leading to a burst of activity in the market, market participants told Fastmarkets on Friday October 16.

Rules concerning the registration of scrap exporters to Indonesia came into force on September 30, causing many deals to be canceled because some exporters were unable to register at their local embassy in time for the rule change.
Many traders have been unable to sell material to the country from origins such as the UK in recent weeks, Fastmarkets heard, leading to the Indonesian market fearing a shortage of scrap towards the end of the year.
Scrap of Hong Kong and Australia origin was heard to be less affected, with some companies able to register at Indonesian embassies in these territories.

Market participants have also told Fastmarkets of delays to Indonesian steelmakers in renewing their import licenses for scrap. Two trading sources told Fastmarkets that the application process, which used to take ten days, is...

Published

Lee Allen

October 16, 2020

11:48 GMT

Singapore