Inalum to stop export in 2017

Petromindo

State-owned aluminum maker PT Indonesia Asahan Aluminium (Inalum) will no longer export aluminum products next year as it focuses on the domestic market, Kontan reported on Friday.

The paper quoted Inalum President Director Winardi Sunoto as saying that domestic price of aluminum is now similar to that of international price, which currently stands at around US$1,700 per ton, and is expected to increase by $50-100 per ton in 2017.

He added that growth demand in the domestic market next year is expected to be higher at 5 percent, than growth in export market of 3.5 percent. Growth in domestic demand is expected to come from various manufacturing industries including the automotive sector, which has been the company?s traditional domestic market.

Export market currently accounts for about 15 percent of Inalum?s total sales.

The company plans to also start producing alloy and billet next year of 60,000 tons, which carry higher price than aluminum, thus should help the company in achieving higher revenue in 2017.

Inalum currently produces about 260,000 tons of aluminum per year, and will double the output to 500,000 tons in 2020 and to 1 million tons in 2025 as part of expansion strategy. (*)