ZINC COATED STEEL SHEET INDUSTRY REINVIGORATED.Introduction
When the economic crisis destroyed the construction sector, the zinc zinc, metallic chemical element; symbol Zn; at. no. 30; at. wt. 65.38; m.p. 419.58°C;; b.p. 907°C;; sp. gr. 7.133 at 25°C;; valence +2. Zinc is a lustrous bluish-white metal. It is found in Group 12 of the periodic table. industry was badly affected since the sector was the main consumer of zinc sheets. It is understandable that a number of zinc producers had to close down their factories or maintain their operation at a much lower production capacity.
A number of companies with strong capital and well established marketing network overseas manage to export their products. Some of them were successful in this venture but many were not able to face the tough competition at the international market, forcing them to rely on the limited market share in the country.
In the beginning of this year, however, the industry started to see the light at the end of the tunnel especially when the government started to reprogram re·pro·gram
tr.v. re·pro·grammed or re·pro·gramed, re·pro·gram·ming or re·pro·gram·ing, re·pro·grams
To program again.
re the development of low cost housing even if the number is much smaller compared to the period prior to the crisis.
The domestic market condition, however, is still sluggish while competition is getting more fierce, not just from similar products but also substitute products such as asbestos asbestos, mineral
asbestos, common name for any of a variety of silicate minerals within the amphibole and serpentine groups that are fibrous in structure and more or less resistant to acid and fire. sheets and brick tiles.
This report will discuss the development of zinc industry in Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. during the crisis,, the competition and market opportunities that can be expected in the future.
Description of products
Zinc coated steel sheet is a derivative derivative: see calculus.
In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. product of Cold Rolled Sheet (CRS CRS Course
CRS Certified Residential Specialist (real estate certification)
CRS Central Reservation System
CRS Can't Remember Stuff (polite form)
CRS Cost Reduction Strategy
CRS Consumer Relations Specialist ) which is coated with zinc. Zinc coated steel sheet produced in Indonesia is classified into two major groups ie plain zinc coated steel sheet and colored zinc coated steel sheet. The latter is produced from the former that has been coated with color material. In terms of shapes, zinc coated steel sheets consists of the flat one and the corrugated cor·ru·gate
v. cor·ru·gat·ed, cor·ru·gat·ing, cor·ru·gates
To shape into folds or parallel and alternating ridges and grooves.
Zinc coated steel sheet produced in Indonesia has a thickness thickness (thik´nes) a measurement across the smallest dimension of an object.
triceps skinfold (TSF) thickness of 0.20 mm to more than 1.00 mm. The past 12 months however, have seen more zinc coated steel sheet produced with thickness of less than 0.20 mm which is actually below the minimum thickness under the Standard Nasional Indonesia (SNI (1) (Subscriber Network Interface) The point of interface between the customer's equipment (CPE) and a communications service from a common carrier.
(2) (SNA Network I ).
Decreasing number of producers
The declining demand for zinc in the country as a consequence of termination of many construction projects has forced many local zinc producers to quit To exit the current program. . Among the companies that have had to close down their operation are PT Polyguna Nusantara, PT Super Steel Indah, PT Eastindo Utama Industri, PT Alim Ampuh Jaya Jaya (born Maria Luisa Ramsey on March 21, 1970, in Manila, Philippines) is a Filipino pop singer with African American ancestry. Biography
She is known in the Philippines as the Queen of Soul. , PT jaindo Utama and PT Union.
In the efforts to improve the efficiency, several producers that belong to one particular group have merged into one zinc producer. One example was, PT Industri Baja Baja (bŏ`yŏ), city (1991 est. pop. 38,867), S Hungary, on the Danube River. It is a river port and a road and rail hub, where agricultural products of the surrounding region are traded and processed. Garuda in Medan, that has merged with PT Industri Baja Galvanilmas which is owned by the same person ie Bobby Pitoy.
According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the Association of Zinc Coated Steel Sheets (GAPBESI) there are 15 factories that are operational with a total capacity of 1.187.000 ton per year. However, field checking has shown that 5 out of these 15 companies have not been operational for the past one or two years. Meanwhile the ones that are still operational are struggling to do so at a much lower rate (less than 50%) than their production capacity.
These companies that are still surviving are those that have started to be export oriented o·ri·ent
1. Orient The countries of Asia, especially of eastern Asia.
a. The luster characteristic of a pearl of high quality.
b. A pearl having exceptional luster.
3. and they are normally the major zinc producers in Indonesia such as PT Fumira, PT BHP BHP
blood hydrostatic pressure; the pressure exerted by the blood cells and plasma in the capillaries. Steel Indonesia and PT-Tumbak Mas.
Table - 1 List of Zinc Coated Steel Sheets Producers in Indonesia, 2000
Producer Established Location /expanded PT Fumira 19,681,997 West Java, Semarang PT Tumbak Mas 1967, 1981, 1996 West Java PT Bisma Narendra 1998 West Java PT BHP Steel Indonesia 1995 Cilegon PT Sarana Sentral Baja 1999 West Java PT Industri Galvanael Mas 1996 Medan PT Intan Nasional Indonesia 1971, 1982 Medan PT Kerismas Witico Makmur 1972, 1979 Jakarta, Manado PT Wira Mustika 1977 Jakarta PT Kalimantan Steel Corp 1972, 1981 Pontianak, Surabaya PT Industri Baja Garuda 1970 Medan PT Sermani Steel 1970 U.Pandang PT Polyguna Nusantara 1972 Padang PT Dharmaputera 1974 Palembang PT Semarang Makmur 1975 Semarang Total Producer Prod. Cap (ton/year) PT Fumira 210.000 PT Tumbak Mas 155.000 PT Bisma Narendra 58.000 PT BHP Steel Indonesia 130.000 PT Sarana Sentral Baja 100.000 PT Industri Galvanael Mas 100.000 PT Intan Nasional Indonesia 90.000 PT Kerismas Witico Makmur 100.000 PT Wira Mustika 48.000 PT Kalimantan Steel Corp 43.000 PT Industri Baja Garuda 0 PT Sermani Steel 36,000 PT Polyguna Nusantara 24,000 PT Dharmaputera 15,000 PT Semarang Makmur 42,000 Total 1,187,000
Source: Association Steel Sheet/Data Consult
Production of Zinc Coated Steel Sheet dropped considerably
The past two years, 1998 and 1999, have seen a drastic drop of production of zinc coated steel sheet in the country. The industry reached the lowest point in 1998, when the production only reached 230,645 tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. compared to 413,738 tons in 1997. This unfavourable situation is understandable since at the same time the construction sector experienced a contraction contraction, in physics
contraction, in physics: see expansion.
contraction, in grammar
contraction, in writing: see abbreviation.
contraction - reduction of up to 46% as seen from its contribution to the GDP GDP (guanosine diphosphate): see guanine. (Gross Domestic Product).
In 1999, the signs of revival revival n. 1) requesting a court to reinstate the force of an old judgment. 2) reinstating a contract or debt by a new agreement after the right to demand performance or collect has expired under the statute of limitations (the time to sue). started to appear, albeit softly in the form of an increase of 8,55%. According to a source within the zinc industry, the year 2000 has shown better signs of recovery During the semester se·mes·ter
One of two divisions of 15 to 18 weeks each of an academic year.
[German, from Latin (cursus) s I of this year, zinc production has reached 147.800 ton.
Table - 2 Production of zinc coated steel sheet, 1995-2000(*)
Year Production Growth (000 tons) (%) 1995 406,141 -- 1996 414,790 2.13 1997 413,738 -0.25 1998 230,645 -44.25 1999 250,359 8.55 2000(*) 147,800 --
Note: (*) as of June 2000
The Industry dominated by 5 companies
Although the Department of Trade and Industry The Department of Trade and Industry was a United Kingdom government department which was disbanded with the announcement of the creation of the Department for Business, Enterprise and Regulatory Reform on 28 June 2007. registered 22 companies and the association 15 companies in operation, the Indonesian zinc coated steel sheet industry is actually dominated by 5 major companies ie PT Fumira, PT Tumbak Mas, PT BHP Steel, PT Kerismas Witico Makmur, PT Bisma Narendra and PT Kalisco.
In terms of groups that oversee these companies, the industry is dominated by 3 major groups ie Argo Argo (är`gō), in Greek mythology, ship in which Jason and the Argonauts sailed in quest of the Golden Fleece. Most legends say that Argus, son of Phrixus, was the builder, with the help of Athena. Manunggal Group, Salim Group The Salim Group is Indonesia's biggest conglomerate with assets including Indofood Sukses Mamur, the world's largest instant noodle producer, and Bogasari, a large flour-milling operation . The group was founded by Sudono Salim. and Rodamas Group and an Australian based company, BHP steel.
PT Fumira, is a producer of zinc coated steel sheet with a production capacity of 210.000 ton per year in 1999. PT Fumira is a joint venture between a local company PT Ragam Logam which is under the Argo Manunggal Group (40%) and 2 Japanese companies ie Nippon Nippon (nĭp`ŏn, nĭpŏn`), name for Japan, derived from Dai Nippon, meaning Great Japan. The expression comes from the Chinese ideograph for the place where the sun comes from, or Land of the Rising Sun. Steel Corp and Mitsui Mitsui: see zaibatsu. & Co.
In view of the production capacity, the second largest producer is PT Tumbakmas Inti Mulia, a subsidiary of the Roda Mas Group. PT BHP Steel Indonesia is a joint venture between an Australian company, The Broken Hill Proprietary Company Ltd and several local companies ie PT Puma Sentana Baja, PT Krakatau Industrial Estate, Cilegon Cilegon is a major coastal industrial city in Banten province, Indonesia. Among the factories located in Cilegon are PT Krakatau Steel, a vital company in Indonesia, which produces steel for industrial (domestic and foreign) needs, and PT Asahimas Chemical. Cahaya Steel and Yayasan Kesejahteraan Karyawan Bank Indonesia Bank Indonesia is the central bank of Indonesia. Its current governor is Burhanuddin Abdullah. History
Bank Indonesia was founded on July 1, 1953, in the Sukarno era - from the nationalization of De Javasche Bank, a Dutch bank dating from colonial times. . This company has a production capacity of 130.000 ton and is the third largest producer in Indonesia.
The following table shows that even the large producers of zinc coated steel sheets have been operating at 15-40% of their production capacity. Only PT Kerismas Witico makmur has been producing at above 50% of the production capacity.
Table - 3 Production of zinc coated steel sheet by company, 1997-1999
Producers Prod. Cap 1997 PT Fumira 210,000 55,156 PT Tumbak Mas 155,000 57,962 PT Bisma Narendra 58,000 0 PT BHP Steel Indonesia 130,000 102,144 PT Sarana Sentral Baja 100,000 0 PT Industri Galvanael Mas 100,000 0 PT Intan Nasional Indonesia 90,000 22,259 PT Kerismas Witico Makmur 100,000 79,774 PT Wira Mustika 48,000 8,827 PT Kalimantan Steel Corp 43,000 29,239 PT Industri Baja Garuda 0 25,325 PT Sermani Steel 36 22,237 PT Polyguna Nusantara 24,000 0 PT Dharmaputera 15,000 10,816 Others n.a. 0 Total 413,738 Producers 1998 1999 PT Fumira 85,348 52,707 PT Tumbak Mas 14,040 24,147 PT Bisma Narendra 1,060 13,586 PT BHP Steel Indonesia 29,898 57,695 PT Sarana Sentral Baja 651 86 PT Industri Galvanael Mas 14,621 0 PT Intan Nasional Indonesia -- 0 PT Kerismas Witico Makmur 47,663 67,359 PT Wira Mustika -- 0 PT Kalimantan Steel Corp 15,841 19,113 PT Industri Baja Garuda 0 0 PT Sermani Steel 20,000 7,090 PT Polyguna Nusantara 0 0 PT Dharmaputera 1,512 6,390 Others 0 1,771 Total 230,645 250
Source: GI sheet association/field research/PT KS
Import of zinc coated steel sheet still huge
Although the local market is still sluggish, it appears that the import of zinc coated steel sheet has remained large as it reached 55.465 tons worth 1 US$ 34.925.000. The import has dropped compared to the figure of the previous three years which reached an average of 77.000 - 91.000 ton per year.
The import of zinc coated steel sheet has been dominated by the colored type that is required for roofs. The import has been done by BRC BRC Black Rock City (Burning Man)
BRC British Retail Consortium
BRC Business Resource Center (Small Business Administration)
BRC Bisexual Resource Center
BRC Black Radical Congress Lysaght Indonesia, one of the most prominent roof supplier. The import of the type known as "electrolytically plated with zinc" is also quite large particularly to meet the demand from the automotive, sector One of the importers is PT Toyota Astra motor which imports zinc coated steel sheet directly particularly the "zinc/aluminium coated GI sheet" type.
Import of zinc coated steel sheet is also done by producers of electronic and electrical goods such as AC ie PT Matushishta Gobel Gobel and Göbel are surnames, and may refer to:
The following table shows that import of zinc coated steel sheet declined in 1999. In 2000, the import will increase as shown by the volume registered during the first semester which reached 29.924 ton. This growth has been triggered by the recovery of the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. and the business sector in general which has created demands due to construction of new buildings and renovation of existing ones.
Table - 4 Development of Import of zinc coated steel sheet by type, 1995 - June 2000
TONS '000 US$
No. HS DESCRIPTION 1995 7210.30.000 Electrolytically plated with zinc 22,572 17,819 7210.41.000 Corrugated 114 115 7210.49.000 Other 19,242 14,275 7210.50.000 Plated or coated with chrominum oxides or 20,262 with chromium and chromium oxides 14,661 7210.61.000 Plated or coated with aluminium zinc 10,805 alloys 8,832 7210.69.000 Other of flat roll prod. Of iron which -- plated/coated with aluminium-zinc alloys -- 7210.70.000 Painted varnised or coaled with plastic 4,313 5,969 TOTAL 77,308 61,671 DESCRIPTION 1996 1997 Electrolytically plated with zinc 23,212 17,293 18,265 12,401 Corrugated 1 561 5 663 Other 26,540 27,066 19,638 17,754 Plated or coated with chrominum oxides or 12,946 14,103 with chromium and chromium oxides 11,002 10,267 Plated or coated with aluminium zinc 9,687 10,883 alloys 7,035 7,222 Other of flat roll prod. Of iron which 3,302 5,638 plated/coated with aluminium-zinc alloys 2,671 5,252 Painted varnised or coaled with plastic 2,646 3,658 3,616 4,778 TOTAL 78,334 79,202 62,232 58,337 DESCRIPTION 1998 1999 Electrolytically plated with zinc 21,988 15,137 15,544 10,392 Corrugated 686 1 758 7 Other 35,981 18,431 23,193 10,914 Plated or coated with chrominum oxides or 20,362 17,246 with chromium and chromium oxides 14,640 10,247 Plated or coated with aluminium zinc 7,217 1,834 alloys 5,168 1,027 Other of flat roll prod. Of iron which 2,659 123 plated/coated with aluminium-zinc alloys 2,145 84 Painted varnised or coaled with plastic 2,622 2,693 3,020 2,254 TOTAL 91,515 55,465 64,468 34,925 DESCRIPTION 2000(*) Electrolytically plated with zinc 11,252 6,501 Corrugated 4 4 Other 4,587 2,636 Plated or coated with chrominum oxides or 8,893 with chromium and chromium oxides 5,273 Plated or coated with aluminium zinc 3,070 alloys 1,799 Other of flat roll prod. Of iron which 643 plated/coated with aluminium-zinc alloys 462 Painted varnised or coaled with plastic 1,475 1,182 TOTAL 29,924 17,857
Source: Data Consult
Japan is the main supplier of zinc coated steel sheet to Indonesia. The supply from Japan, prior to the crisis, reached 45-50% of Indonesia's total import of this product. During the past two years, the supply has increased sharply, into 75-80% of Indonesia's total import. The second largest supplier, with a much lower portion, is Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. . In 1998, Korea supplied 12.761 tons of zinc coated steel sheet to Indonesia or 14% of the total import by Indonesia.
Table - 5 Development of Import of zinc coated steel sheet by country of origin, 1995 - 1999
Tons '000 US$
Country of origin 1995 1996 1997 1998 1999 Japan 40,016 39,670 39,719 65,971 40,992 39,903 34,698 30,445 45,650 26,882 USA 652 583 37 368 388 506 475 115 520 283 Germany 79 832 166 107 98 93 600 160 86 63 France 135 695 301 87 11 156 575 243 218 9 Korea 15,539 17,887 16,911 12,761 8,823 11,713 13,624 11,459 9,146 5,460 Australia 4,686 2,808 4,287 1,686 84 3,536 1,954 3,203 1,255 60 Taiwan 312 7,585 7,639 935 1,633 377 4,933 4,893 662 890 Singapore 243 273 620 515 418 201 109 391 437 115 Canada 99 48 462 686 -- 67 91 564 783 -- Belgium & Luxemburg 1,605 3,411 34,381 1,653 838 1,066 2,292 2,102 1,057 160 Brazil 691 496 3,656 3,313 605 433 383 2,524 2,191 308 Others 13,251 4,046 1,966 3,433 1,575 3,620 2,498 2,238 2,463 695 Total 77,308 78,334 79,202 91,515 55,465 616,711 62,232 58,337 64,468 34,925
Source: Data Consult
Export of zinc coated steel sheet increased
The sharp depreciation of rupiah ru·pi·ah
n. pl. rupiah
See Table at currency.
[Hindi rupay, rupiy against the US $ has encouraged producers of zinc coated steel sheets to penetrate the export market. This is also due to the sluggish domestic market which has been affected by the weakening purchasing power Purchasing Power
1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase.
2. of the people.
Increasing the export of this product is not so easy as it has to face fierce competition with the products of neighbouring neighbouring or US neighboring
situated nearby: the neighbouring island
neighbouring U.S. countries such as Malaysia Malaysia (məlā`zhə), independent federation (2005 est. pop. 23,953,000), 128,430 sq mi (332,633 sq km), Southeast Asia. The official capital and by far the largest city is Kuala Lumpur; Putrajaya is the adminstrative capital. . The companies that have managed to push into the export market are those with connections overseas such as PT Fumira which has connection with a giant Japanese steel company and PT BHP Steel Indonesia which has a foreign partner from Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. .
The type of product that has been exported by the Indonesian producers is the steel sheet coated with aluminium zinc.
Table - 6 Development of Export of Zinc Coated Steel Sheet 1995-2000(*)
Tons '000 US$
No. HS DESCRIPTION 1995 7210.30.000 Electrolytically plated with Zinc -- -- 7210.41.000 Corrugated 26,470 20,865 7210.49.000 Other 1,624 1,274 7210.50.000 Plated or coated with chrominum oxides or -- with chromium and chromium oxides -- 7210.61.000 Plated or Coated with aluminium zinc 13 alloys 7 7210.69.000 Other of flat roll prod. Of iron which 127 plated/coated with aluminium-zinc alloys 167 7210.70.000 Painted, varnised or coated with plastic 30 21 TOTAL 28,264 22,334 DESCRIPTION 1996 1997 Electrolytically plated with Zinc 323 -- 174 -- Corrugated 14,068 26,749 11,718 27,655 Other 2,463 1,323 1,916 915 Plated or coated with chrominum oxides or -- 19 with chromium and chromium oxides -- 31 Plated or Coated with aluminium zinc 2,841 20,170 alloys 1,907 13,360 Other of flat roll prod. Of iron which 4 -- plated/coated with aluminium-zinc alloys 2 -- Painted, varnised or coated with plastic 802 11,373 689 2,479 TOTAL 20,501 59,634 16,406 44,440 DESCRIPTION 1998 1999 Electrolytically plated with Zinc 19,574 10,332 9,269 4,502 Corrugated 21,297 3,992 15,057 2,065 Other 5,569 12,359 2,978 6,093 Plated or coated with chrominum oxides or 181 1,086 with chromium and chromium oxides 259 2,326 Plated or Coated with aluminium zinc 15,122 31,958 alloys 8,599 15,962 Other of flat roll prod. Of iron which -- -- plated/coated with aluminium-zinc alloys -- -- Painted, varnised or coated with plastic 2,223 2,831 1,708 1,930 TOTAL 63,966 62,579 37,870 32,893 DESCRIPTION 2000(*) Electrolytically plated with Zinc 13,871 6,449 Corrugated 2,514 1,335 Other 4,018 2,336 Plated or coated with chrominum oxides or 2,027 with chromium and chromium oxides 2,813 Plated or Coated with aluminium zinc 12,601 alloys 6,752 Other of flat roll prod. Of iron which 21 plated/coated with aluminium-zinc alloys 15 Painted, varnised or coated with plastic 120 85 TOTAL 35,151 19,770
(*) up to June 2000
Source: Data Consult
The countries of destination for the export of Indonesian zinc coated steel sheet have varied and frequently changed. In 1995, the major country of destination is Myanmar Myanmar (myän`mär, mēän'mär`) or Burma (bûr`mə), officially Union of Myanmar, republic (2005 est. pop. 42,909,000), 261,789 sq mi (678,033 sq km), SE Asia. , in 1997 Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). and in 1998 again Myanmar. In 1998, the export to the USA was quite significant although less than that to Myanmar.
Table - 7 Development of Export of zinc coated steel sheet by country of destination, 1995-1999
Country of destination 1995 1996 1997 1998 1999 China 700 -- 934 3,617 2,312 679 -- 633 2,894 1,518 Singapore 5,111 1,247 29,051 4,310 1,309 4,184 1,014 22,238 4,102 1,017 Myanmar 20,763 15,711 8,869 17,074 4,436 16,338 12,993 7,541 10,362 2,264 Vietnam Rep 605 192 954 3,458 22,382 373 136 709 2,396 11,101 USA 380 -- -- 13,381 11,683 268 -- -- 6,906 5,390 Malaysia 131 1,122 6,349 64 200 110 758 4,254 41 115 Philippines -- 622 3,086 397 370 -- 325 1,875 384 335 Thailand -- 1,210 9,137 1,624 128 -- 883 6,194 702 84 Equador -- -- -- 4,386 1,276 -- -- -- 2,464 843 Canada -- -- -- 217 9,563 -- -- -- 125 4,617 Others 574 397 1,254 15,438 8,920 382 297 996 7,494 5,609 Total 28,264 20,501 59,634 63,966 62,579 22,334 16,406 44,440 37,870 32,893
Source: Data Consult
Increase in consumption started
The past three years (up to 1999), have seen a drastic decrease in consumption of zinc coated steel sheet due to the lack of construction activities, neither for new buildings nor for renovation, as the purchasing power of the people weakened considerably. During this period the consumption dropped from 495.794 ton in 1996 to 247.549 ton in 1998 and 242.886 ton in 1999.
In 2000, the demand from the local market started to increase particularly for low cost housing projects. The first semester of 2000, registered a total consumption of 153.181 tons.
Assuming that the stocks of product at the beginning and end of the year remain the same, the consumption of zinc coated steel sheet can be estimated as the sum of production and import minus export. Using this formula, the consumption rates are as follows:
Table - 8 Estimated Growth of Consumption of Zinc Coated Steel Sheet, 1995- 2000(*)
Year Production Imports Exports Consumption Increase (%) 1995 435,117 68,880 25,264 474,733 -- 1996 450,907 65,388 20,501 495,794 4.43 1997 523.964 79.202 59.634 543.532 9.62 1998 220.000 91.515 63.966 247.549 -54.46 1999 250.000 55.465 62.579 242.999 -1.84 June 2000 147.800 35.151 29.770 153.181 -36.96
Source: Data Consult
In Indonesia, zinc coated steel sheets are mostly used for "roofing and sliding", and only 20% are used for deck, ducting duct·ing
1. A duct or system of ducts.
2. Material for making ducts. , automotive and industrial purposes.
Competition Getting Tougher
The increasing consumption in the country has been accompanies by the tougher competition among small, medium and large producers. The competition has been shown by the aggressive war of price, not just by small but also large companies. In order to be able to offer lower prices, many producers have resorted to producing thinner zinc coated steel sheets, below the minimum thickness required by SNI ie 20 mm. Previously this strategy was adopted by small producers who-wanted to aim for the low end market. Nowadays, the large producers are following suit in order to compete for the low end market segment.
Normally the distribution of zinc coated steel sheets from producers to consumers is done by distributors that also act as stockists. The most common distribution channel is from producers to distributors, to retailers and from retailers to consumers. As shown in the following diagram diagram /di·a·gram/ (di´ah-gram) a graphic representation, in simplest form, of an object or concept, made up of lines and lacking pictorial elements. .
In certain cases, producers can also directly supply consumers especially if the demand is substantial and for a certain period. This type of consumer is often referred to as a project. The direct supply from the factory is required by the consumer in order to guarantee continuous availability of material for example in the case of a long term project that is under implementation. Usually the transaction of purchase/sale is done through a contract for supply for a certain period.
The distribution channel from distributors direct to consumers is normally applicable for modest size projects for a period that is not too long. For projects like this, consumers can contact distributors to ensure that the supply can be guaranteed during the construction period
Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. of raw material
The main raw material for zinc coated steel sheet is "Cold Rolled Steel Sheet" (CRC/S), which makes up 80% of the total production costs for this industry. Due to the important role of CRC/S, the industry is highly affected by the fluctuation Fluctuation
A price or interest rate change. of the price of CRC/S.
In the past, in order to protect the only producer of CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor. in Indonesia ie PT Krakatau Steel, the Government applied a high import duty tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic of 22,5% including 7,5% surcharge An overcharge or additional cost.
A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. . Through several deregulation Deregulation
The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.
Traditional areas that have been deregulated are the telephone and airline industries. efforts launched by the Government, in 1996, this import duty tariff was reduced to 5-10%. This has helped the zinc coated steel sheet industry considerably as the costs for purchasing the raw material could be lowered down. As we know, there are currently other producers of CRC, however, the second largest is PT Essar Dhananjaya Arjuna was the third son of Pandu and Kunti, who was begotten by Indra. One of his most important roles was as the dear friend and brother-in-law of Lord Krishna, from whom he heard the Bhagavad Gita. Arjuna is known by several other names. which has a production capacity of 200.000 ton per year, still far below the 850.000 ton per year of PT KS.
Assuming that 0,964 ton CRC is required to produce 1 ton of zinc coated steel sheet,, the consumption of CRC by the industry reached 524.921 ton in 1997, 230.645 tons in 1998 and 250.467 ton in 1999.
Producers of zinc coated steel sheet normally buy their raw material directly from PT Krakatau Steel. This covered 64% of the total requirement in 1997 and 69% in 1998. The Producers of zinc coated steel sheets also have to import part of their CRC requirements due to the fact that certain specifications that are required cannot be supplied by the local producers.
It is also because the supply from the local producers cannot meet the entire demand. PT KS as the largest producer of CRC has also tried to step up export of CRC in order to gain from the depreciation of Rupiah which was the case up to 1998. Once PT KS even had to use the allocation The apportionment or designation of an item for a specific purpose or to a particular place.
In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as for the local consumers.
Table - 10 Procurement of CRC/S by producers of zinc coated steel sheets by source, 1998
Company Total Supply Supply Procurement from PT from KS other producers PT Fumira 82,275 58,082 9,248 PT Tumbak Mas 13,535 2,215 2,023 PT Bisma Narendra 1,026 1,026 0 PT BHP Steel Indonesia 28,822 17,444 9,168 PT Sarana Sentral B 628 0 0 PT Industri Galvanael Mas 14,100 1,155 0 PT Intan Nasional Ind -- 0 0 PT Kerismas Witico 45,947 42,697 2,748 Makmur PT Wira Mustika -- 0 0 PT Kalimantan Steel Corp 15,271 15,271 0 PT Semarang Makmur -- -- 0 PT Industri Baja Garuda -- -- 0 PT Sermani Steel 19,280 12,875 0 PT Polyguna N -- -- 0 PT Dharmaputra 1,458 1,458 0 -- 0 0 Total 222,342 152,223 23,187 Company Coil C Import Distri- tor PT Fumira 0 14,945 PT Tumbak Mas 0 9,297 PT Bisma Narendra 0 0 PT BHP Steel Indonesia 0 2,210 PT Sarana Sentral B 0 628 PT Industri Galvanael Mas 0 12,945 PT Intan Nasional Ind 0 0 PT Kerismas Witico 0 502 Makmur PT Wira Mustika 0 0 PT Kalimantan Steel Corp 0 0 PT Semarang Makmur 0 0 PT Industri Baja Garuda 0 0 PT Sermani Steel 0 6,405 PT Polyguna N 0 0 PT Dharmaputra 0 0 0 0 Total 0 46,932
Source: PT KS and field survey
In 1999, the role of the other producers beyond PT KS in supplying became stronger ie from 10% to 25%.
Table - 11 Procurement of CRC by producers of zinc coated steel sheets, 1999
Producers Total Total PT KS Prod PT Fumira 52,707 50,810 44,610 PT Tumbak Mas 24,147 23,278 10,078 PT Bisma Narendra 13,586 13,097 0 PT BHP Steel Indonesia 57,695 55,618 41,218 PT Sarana Sentral Baja 86 83 83 PT Industri Galvanael Mas 0 0 0 PT Intan Nasional Indonesia 0 0 0 PT Kerismas Witico Makmur 67,359 64,934 54,434 PT Wira Mustika 0 0 0 PT Kalimantan Steel Corp 19,113 18,425 17,425 PT Industri Baja Garuda 0 0 PT Sermani Steel 7,090 6,835 6,835 PT Polyguna Nusantara 0 0 0 PT Dharmaputera 6,390 6,160 5,160 PT Harapan Sukses Jaya 1,357 1,308 1,308 Others 414 399 399 Total 250,359 240,947 181,550 Producers Oth Coil C Import Manuf Dist PT Fumira 6,200 0 0 PT Tumbak Mas 13,200 0 0 PT Bisma Narendra 13,097 0 0 PT BHP Steel Indonesia 14,400 0 0 PT Sarana Sentral Baja 0 0 0 PT Industri Galvanael Mas 0 0 0 PT Intan Nasional Indonesia 0 0 0 PT Kerismas Witico Makmur 10,500 0 0 PT Wira Mustika 0 0 0 PT Kalimantan Steel Corp 1,000 0 0 PT Industri Baja Garuda 0 0 0 PT Sermani Steel 0 0 0 PT Polyguna Nusantara 0 0 PT Dharmaputera 1,000 0 0 PT Harapan Sukses Jaya 0 0 Others 0 0 0 Total 59,397 0 0
Source: PT KS/and field survey.
In Indonesia, zinc coated steel sheet is widely used for roofing and sliding (approximately 80%) and the remaining 20% for the other industries such as automotive, floor and decks, ducting and other industrial sectors. Under the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact.
2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , the future prospects for the zinc coated steel sheet industry will continue to depend highly on the fact whether or not the construction industry will recover in the near future
The GDP growth to the third quarter of 2000, has been quite encouraging at 4%, it is expected that it will reach 4.5% by the end of 2000.
According to observers, the property sector in general and housing in particular, will continue to grow starting from 2000 and will boom in 2004. The growth has been triggered by several factors. Firstly it is the fact that the interest rate for time deposits are no longer attractive, forcing investors to turn into the housing market. The other factor is the completion of the banking recapitalization Recapitalization
Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable.
Companies often want to diversify their debt-to-equity ratio to improve liquidity. program that enables banks to resume the provision of credits.
The interest rate for house ownership credit (KPR KPR Kawartha Pine Ridge (Canada)
KPR Kansas Public Radio
KPR Kennewick, Pasco, Richland (Tri-cities Washington)
KPR Kentucky Performance Report
KPR Ketopantoate Reductase
KPR Korean People's Republic ) is now below 20 percent, encouraging people to buy houses. The basic assumption for the expected booming of the housing sector is the projection projection, in psychology: see defense mechanism.
See rear-projection TV, front-projection TV and LCD panel.
(theory) projection - In domain theory, a function, f, which is (a) idempotent, i.e. of inflation rate from 8 percent in 2000 to 7 percent in 2001. In addition to these, the economic growth is expected to reach 5 percent, an increase from the figure of 4 percent in 2000. With all the above positive factors, it is expected that the consumption of zinc coated steel sheet will be as follows.
Table - 12 Estimated Growth of Consumption of Zinc Coated Steel Sheet, 1999 - 2005(*)
Year Projected production Growth rate (%) tons 2000 267 15 2001 294 10 2002 338 15 2603 388 15 2004 466 20 2005 513 10
Source: Data Consult
Despite the prospect of increasing consumption of zinc coated steel sheet, however, it appears that the growth will not be significant enough to attract new investors into the industry, at least in the coming three years.
The existing producers are currently operating at 20-40% of their production capacity and they do not plan to increase the production capacity in the coming 2-3 years. Their expectation is that the next 2-3 years will enable them to increase the utilization utilization,
n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of the production capacity ie to 70-80% per year. Only if this happens then they will think of expanding the production capacities.