PT Krakatau Steel- Indonesia’s biggest steel producer, narrowed net losses in 2018 as higher sales volume and average selling prices boosted its revenue.
In full-year 2018, the state-owned steel company booked net losses of USD 74.82 million in 2018, a drop of 8.48% from USD 81.74 million in 2017, the company said in a statement posted on its website.
The company’s net revenues surged by 20.05% year-on-year to USD 1,739.54 million in FY 2018 due to higher sales volume and average selling prices of main steel products. Sales volume of HRC grew by 23.24% Y-o-Y to 1.24 MnT, while sales of wire rod surged 55.78% from a year ago to 89,261 MT.
Average selling price for HRC rose by 10.03% in 2018 Y-o-Y to USD 657/MT. The company sold CRC at an average price of USD 717/MT, rising by 6.72% from the previous year, while wire rod’s average selling price gained 15.03% to USD 635/MT.
The company noted that Indonesia’s domestic steel demand throughout 2018 continued to increase due to stronger demand from steel-related sectors and from massive infrastructure development in the country. Krakatau Steel signed cooperation agreement with state-owned construction companies on November 23, 2018 for the supply of steel products for government and private infrastructure projects.
Citing data from the Association of Indonesia Automotive Industries, grew by 7.99% in 2018, with car production at 1.15 million units. Krakatau Steel signed cooperation agreement with state-owned construction companies on November 23, 2018 for the supply of steel products for government and private infrastructure projects.
On November 23, 2018, the company signed cooperation agreements with state-owned construction companies for supplying steel products for government and private infrastructure project.
Operation updates
The company is set to produce its first coil of HRC in 2Q19 following the completion of its Hot Strip Mill #2, which has the capacity to produce 1.5 MnT pa. As of end December 2018, Krakatau Steel completed 91.52% of physical construction of its Hot Strip Mill #2 (HSM#2).
Also, on December 20, 2018, the company kicked off first-blow in (FBI) on its blast furnace. Overall physical construction of the Blast Furnace Complex reached 99,73% as of December 31 and it is in preparation stage for performance test.
As for exports, the company had resumed shipments of HR coils/plates to Malaysia by exporting 12,000 tons of the products following the exemption of anti-dumping duty on steel imports by the Malaysian government. This year, the Cilegon-based company expects to ship 650,000 tons of HR coils/plates this year to Malaysia, India, and other countries.
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