Krakatau Steel Expects to Realize 2.8 Million Tons of Steel Sales in 2018
By : Abraham Sihombing And Aldo Bella Putra | Wednesday, January 24 2018 - 21:00 IWST

PT Krakatau Steel Tbk (KRAS) (Foto Ist)
INDUSTRY.co.id - Jakarta - Steel sales volume of PT Krakatau Steel Tbk (KRAS) is targeted to reach 2.8 million tons in 2018. That means the target is 40% higher than in 2017 of 2 million tons.
"The increase in sales volume aims to anticipate the increase of steel demand in the domestic market," said Suriadi Arif, Senior Vice President of Corporate Secretary of KRAS in Jakarta, Wednesday (24/01/2018).
Suriadi said the steel demand in the domestic market is expected to continue to increase an average of 1 million tons per year. Meanwhile, steel prices are now beginning to improve.
Therefore, according to Suriadi, the company is optimistic that it will be able to improve its performance gradually. That's because of the significant increase in steel prices in the last two years.
"The price of steel has decreased during the period 2011-2015. Nevertheless, the price of domestic CFR HRC in December 2017 has reached US $ 562 per ton, jumped 260% compared to December 2015 which was only US $ 216 per ton," said Suriadi.
Nevertheless, according to Suriadi, the high cost of gas and electricity energy in steel production activities is still burdening the cost of Indonesian domestic steel production.
Therefore, Suriadi revealed, to maintain the stability between the cost of production with the price of steel sales to local and global markets, Krakatau Steel implemented a make or buy strategy.
Suriadi explained, the strategy is implemented by running a factory producing semi-finished steel products. Then it is combined with the pattern of procurement of imported semi finished product raw materials that are highly competitive.
With the implementation of such operations, Suriadi said, KRAS management is optimistic that the local steel producer status of the State-Owned Enterprises (SOEs) can continue to post profit in 2018. (Abraham Sihombing)
Read Also
Trimegah Sekuritas Supports Ikatan Alumni SBM-ITB to Realise Lifelong…
Fujitsu chosen for Dow Jones Sustainability World Index for 22nd…
Olympus Named to Dow Jones Sustainability World Index for Three Consecutive…
New Economic Board, GOTO Share Moves Closer to Global Indices
Midday Break, the Composite SMidday Break, the Composite Stock Price…
Today's Industry

Jumat, 02 Mei 2025 - 10:46 WIB
Binawan and Government Support Indonesian Nurses in Europe through Scholarships
In the midst of the viral #KaburAjaDulu hashtag as a symbol of the young generation's disappointment with domestic working conditions, Binawan responded with real action: dispatching Indonesian…

Jumat, 28 Maret 2025 - 22:21 WIB
SUNeVision Initiates MEGA IDC Phase Two Development
SUNeVision, the technology arm of Sun Hung Kai Properties (SHKP), today announced the commencement of construction for Phase Two of MEGA IDC in Tseung Kwan O. As Hong Kong's largest data centre…

Jumat, 28 Maret 2025 - 22:07 WIB
TDL Records New Revenue Record of IDR 25 Trillion in 2024 Ahead of 50th Anniversary
PT Metrodata Electronics Tbk (MTDL), the largest technology Company with the most complete IT and telecommunications products in Indonesia, managed to record a revenue of IDR 25 trillion in…

Jumat, 28 Maret 2025 - 22:00 WIB
Wireless Logic Selected By Thales As IoT Connectivity Partner
Wireless Logic, a global leader in IoT connectivity solutions has been selected by Thales, a global leader in advanced eSIM technologies, to enable secure, scalable and resilient IoT connectivity…

Jumat, 28 Maret 2025 - 21:53 WIB
Microvista Expands International Presence with Mobile CT System ScanExpress
The German specialist in industrial computed tomography and non-destructive testing, Microvista, announces the European expansion of its innovative mobile CT system, ScanExpress. The system…
News Comment