Mining News Pro - PT Krakatau Steel, Indonesia’s state-owned steel maker, sold 1.05 million tons of steel products in the first six months of this year, rising 24.4% from 841,101 tons in the same period last year, bolstered by strong sales of hot rolled coil, cold rolled coil and long products, the company said in a statement posted on its website.
Sales of HRC surged by 47.10% to 576,652 in January to June this year, from 392,025 tons in the same period in 2017. The company sold 288,608 tons of CRC in the first six months of this year, a nearly 10 percent increase from 263,068 tons in the same period last year, while sales of long products for the same period inched up by 4.27% to 141,824 tons year-on-year.
“From January until June 2018, steel demand in Indonesia continued to increase on the back of stronger demand from steel-related sectors,” the company said in the statement. Automotive sector grew 4% with car production at 624,408 units, the company said, citing data from the Association of Indonesia’s Automotive Industry (Gaikindo).
The company also managed to sell its products at higher prices. Average selling prices for HRC climbed 12.52% to US$ 660/ton, while selling price for CRC averaged at US$711/ton, a 5.21% increase from the same period last year. Prices of the company’s long products rose by 24% to US$643/ton in the first six months of this year, year-on-year.
Higher sales prices and volumes boosted Krakatau Steel net revenues to US$854.27 million in the first half of 2018, a 34.75% year-on-year increase.
Activity update
PT Krakatau Steel expects to complete construction of its Hot Strip Mill 2 in the third quarter of 2019. The construction has reached 78.17% as of June 2018. When construction is completed, Krakatau Steel production capacity will increase by 1.5 million tons.
Deliveries of stel products for the construction of the Jakarta-Cikampek II (Japek II) elevated toll road has reached 86,400 tons as of June 2018. The project requires a total of 225,000 tons of steel.