Indonesia: Krakatau Steel Books Operating Losses in 9-Month Increase in Sales Volume
Mining News Pro - PT Krakatau Steel - Indonesia’s state-owned steel maker, booked operating losses of USD 10.70 million in January to September period this year, compared to USD 23.19 million operating profit due to higher raw material costs, despite higher sales, the company said in a report posted on its website.
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According to Mining News Pro -PT Krakatau Steel - Indonesia’s state-owned steel maker, booked operating losses of USD 10.70 million in January to September period this year, compared to USD 23.19 million operating profit due to higher raw material costs, despite higher sales, the company said in a report posted on its website.

The company sold nearly of 1.6 MnT of steel in the first nine months of this year, rising 14.24% from 1.4 MnT in the same period in 2017. Krakatau Steel attributed the higher sales to surging sales of hot-rolled coil. In January to September this year, the company sold 913,619 tons of HRC, a 26.60% increase from 721,681 tons in same period in 2017.

Sales of cold-rolled coiI, however, slumped by 5.45% at 391,766 MT in the nine months ending September 2018, from 413,330 MT in the same period last year. Sales of long product and pipes gained by 12.92% and 6.82% respectively in January to September period.

Selling prices for the company’s HRC rose by 11.85% to USD 656/MT in the period, from USD 586/MT in January to September 2017. Krakatau Steel’s CRC fetched an average price of USD 710/MT in January to September this year, a 5.85% increase from USD 671/MT in the same period last year.

As of end June, demand for HRC in Indonesia grew by 11.34% Y-o-Y to 2.48 MnT in 1H 2018, while demand from CRC grew by 5.36% Y-o-Y to nearly 1.1 MnT, according to the company’s data. Krakatau Steel managed to boost its HRC market share to 41% in 1H 2018 from 36% in 1H 2017, while its market share for CRC also climbed to 26% from 25%.

Operations update
PT KS has completed 86.83% physical construction of its Hot Strip Mill Number 2 (HSM#2) as of September 30, 2018. The mill’s construction is completed in 3Q 2019, the company’s HRC production capacity will increase by 1.5 MnT per year to 3.9 MnT/year.

Meanwhile, construction of the company’s Blast Furnace complex has reached 99.56% as of end September 2018. PT KS completed the heating up process of the hot blast stove of its blast furnace on October 16, 2018, with the plant is set for first blow in (FBI) in December 2018.


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