Indonesian state-owned steelmaker PT Krakatau Steel dispatched its first ever export shipment to Malaysia comprising Hot Rolled Coil (HRC), Hot Rolled Plate (HRP), and Hot Rolled Pickled and Oiled (HRPO) on Monday. The shipment was exported from the ‘Bandar Samudera’ Seaport in Cilegon, Banten province.
The company’s steel product shipments skyrocketed to 31,766mt in January from 831mt in the prior-year period. Krakatau’s president director Silmy Karim was optimistic about demand and its sales performance.
In 2020, Krakatau Steel exported 128,342mt of steel products accounting for 12pc of its total sales volume. In 2021, the company targets to lift its exports by 21pc.
In 2021, the company aims to raise its sales volume to over 2mn mt of which, 150,000mt are expected to be exported.
The steelmaker could explore other markets like Australia, Italy, and Spain. The steelmaker also supplies steel, including general structure, pipes, and tubes.
Along with managing the pandemic, the company has been successfully able to reduce the input costs by 50pc in the past two years. It has planned to issue mandatory convertible bonds worth IDR3 trillion ($214mn) as part of the national economic recovery program. The first tranche of the bonds, valued at IDR2.2 trillion was issued at the end of 2020, while the remaining IDR800bn would be issued in 2021.