Source: The Jakarta Post
State-owned steel producer PT Krakatau Steel is eyeing 40 percent sales growth in 2018 as its predicts increases in domestic demand and the price of steel products.
Based on 2016 data, the local demand for steel products reached 12.7 million tons annually.
“We project that the need for steel will increase steadily by 1 million tons a year,” said Krakatau Steel corporate secretary Suriadi Arif in a statement on Wednesday, as reported by tribunnews.com.
“Krakatau Steel is optimistic we will be able to improve our performance, supported by a significant increase in the price of steel in the last two years,” Suiai said.
The domestic price of HRC CFR in December, 2017, reached US$562 per metric ton, a 260 percent increase from $216 per metric ton in December, 2015.
However, he explained that production costs also remained high, particularly because of high energy prices, especially natural gas and electricity.
Krakatau Steel has posted net losses every year since 2012. It ended with a $171.69 million loss in 2016, a reduction from the $320.03 million loss reported the year before. The company’s revenue also remained flat at $1.3 billion throughout 2016.
There is no available data about the company’s performance in 2017.