Krakatau reports shrinking losses
Saturday, May 16 2015 - 03:10 AM WIB
IDX-listed steel maker PT Krakatau Steel Tbk (KS) reported US$42.3 million of losses in the first quarter of this year, 8.6 percent lower than the $46.3 million losses in the same period of last year.
President Director of KS Sukandar said in a statement obtained Saturday that the drop in global steel price due to oversupply and weak demand including at home has affected the company?s performance.
He explained that while sales volume of the company?s steel producers were mostly higher during the quarter, selling price was lower. The first quarter losses were also contributed by losses suffered by subsidiary PT Krakatau Posco.
He, however, expected demand at home to increase in the second half of this year as the government begins spending on various infrastructure projects.
He added that global steel demand this year is projected to be flat, while supply to grow by 4 percent.
Sukandar said that despite the challenging market condition, KS has managed to increase its share of the domestic HRC market from 41 percent in 2013 to 44 percent by end of last year.
Editing by Reiner Simanjuntak