JAKARTA (TheInsiderStories) – Indonesian steel maker PT Krakatau Steel Tbk (IDX: KRAS) has again signed a memorandum of understanding (MoU) on steel supply with Cedex Steel & Metals Pty. Ltd. or known as CEDEX, a steel company from Australia on Thursday (07/25). This agreement will be valid for the next 2 years after the cooperation contract between the two parties ended at the end of last year.
Director Commercial of Krakatau Steel Purwono Widodo said, the signing of this cooperation was a breakthrough in Krakatau Steel’s export sales in 2019, which targets the supply of steel products to reach around 60,000 tons per year.
The steel supply cooperation will only be carried out again this year after Australia previously imposed an anti-dumping import duty of 8.6-19 percent on the import of Hot Rolled Plate (HRP) steel products from Indonesia which was valid since December 19, 2013. The imposition of import duty ended on December 19, 2018.
“Krakatau Steel is very grateful that the Australian government will not continue the process of reviewing the imposition of anti-dumping import duties after December 19, 2017, or exactly a year before the regulation ends so that according to the Anti Dumping Agreement, the anti-dumping expires on December 19, 2018,” he explained.
Director Widodo stated steel exports will continue to increase to channel Krakatau Steel’s steel products. Moreover, the second HSM plant will be operational soon so that there are additional outputs of HRC (Hot Rolled Coil) of 1.5 million tons per year.
So far, the cooperation of CEDEX has long been established with Krakatau Steel. CEDEX has been marketing steel products from Krakatau Steel for nearly 20 years using the Volcano Plate trademark until finally Krakatau Steel products are sold using the name Krakatau Plate in Australia.
Starting with ordering 50 tons, CEDEX is now starting to re-order steel products of up to 60,000 tons per year. Steel products supplied by Krakatau Steel in this cooperation agreement include Hot Rolled Coil, Hot Rolled Sheet, and Hot Rolled Pickled Oiled, or Checkered Plate.
“We will continue to increase our exports to Australia as one of our sales strategies in 2019,” he said.
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