Steel smelting association urges the release of scrap containers

Senin, 27 Februari 2012 | 12:59

Iron & Steel Industry Association urges Ministry of Environment to release 5,000 scrap containers from Tanjung Priok Port Jakarta, Tanjung Perak Port Surabaya, and Belawan Port North Sumatra.According to the Vice Chairman of Indonesian Iron & Steel Industry Association (IISIA) Ismail Mandry, the scrap needs to be released as the main raw materials for steel smelting are running low.

The container detention is making the cost of stockpiling scrap at the port continues to swell due to progressive tariff of US$50 per container a day. “It swells to IDR30 million per box from previously IDR4 million,” he told Bisnis yesterday.

Those containers were stuck since mid January and its number continues to increase. Up to last week, 5,000 scrap containers were stuck at three main entrances.

IISIA believes the detention will lead to scarcity of steel products in the domestic market which in turn trigger a price hike.

50 steel mill as the members of IISIA steel may stop their production activity due to depletion, if the scrap is not immediately released from those ports.

According to Ismail, two containers are indicated to contain hazardous and toxic waste (B3) from the existing 100 scrap containers.

Waiting for decision

Based on the data from IISIA, 2,500 containers were stuck in Tanjung Priok, 1,500 in Tanjung Perak (Surabaya), and 1,000 containers in Belawan.

Currently, 10 Steel smelting companies have stopped their production activity after running out of scrap.

IISIA demands the ministry to release all scrap containers that were held at three ports within 3 x 24 hours.

The Association also urged to accelerate the administration of import permit for scrap and other auxiliary materials. The ministry is expected to be more accurate in determining that scrap import is not included as B3 waste.

IISAI requests for participation in discussing about environment issues and regulation of raw materials importation. (K47) (T06/MSW)