Indonesia has officially opened an anti-dumping investigation into hot-rolled steel coils imported from China’s Wuhan Iron & Steel Group (WISCO). The case, initiated by a complaint from PT Krakatau Posco, highlights Jakarta’s increasing concerns about the impact of low-priced Chinese steel on its domestic industry.

According to Indonesia’s Anti-Dumping Committee (KADI), initial findings show “strong indications of dumping.” Regulators believe WISCO’s export prices in Indonesia may be lower than those charged in its home market, potentially violating international trade rules. If confirmed, the investigation could result in Indonesia imposing anti-dumping duties on Chinese hot-rolled coils.

This development follows Indonesia’s earlier decision in February to apply a 10.47% duty on Chinese hot-rolled plates for five years. With Chinese products accounting for more than 40% of Indonesia’s non-oil imports, trade tensions are already running high.

Key Points for Market Participants

• Timeline: The investigation could take up to 12 months, or 18 months in more complex cases.

• Risks: If WISCO is found guilty of dumping, higher tariffs may reduce Chinese coil competitiveness, prompting buyers to shift toward Vietnam, India, or local mills.

• Strategy: Importers are reviewing HS codes—18 tariff lines are under scrutiny—and preparing alternative sourcing plans to mitigate risk.

Industry Impact

The move underscores Jakarta’s strategy to safeguard its steel sector, with strong support from local producers such as Krakatau Steel and Gunung Raja Paksi. For global steel traders, this investigation is a clear signal that protectionist trade measures remain active in Southeast Asia, reshaping supply chains and pricing strategies in the region.