Steel prices will increase by 15 percent

Steel producers plan to increase the prices of steel and steel related products by between 13 percent and 15 percent this month following the surge in raw materials such as iron ores and scraps, Bisnis Indonesia reported on Friday.

Several producers including, PT Krakatau Steel (Persero) Tbk, PT Gunawan Dianjaya Steel Tbk, and PT Gunung Raja Paksi said that the rise in prices would begin effective this month.

?The increase in prices of between 13 percent and 15 percent is in line with the rise in prices of steel products imported from China, South Korea and Japan,? the marketing director of Krakatau Steel, Yerry said.

The prices of raw materials have begun to increase since January by between 13 percent and 30 percent. The price of scrap rose by 13 percent to $430 in per ton in January from $380 per ton in October. The price of iron ore imported from India rose 20 percent to $150 per ton from $115 per ton, while the price of slab rose 15 percent to $540 per ton. (*)