State steel firm PT Krakatau Steel plans to cut exports of hot-rolled coil and cold-rolled coil by 50% this year to meet rising domestic demand, a company official said on Wednesday (9/1/08) Reuters reported.
Krakatau Steel plans to export 125,000 tons of hot-rolled coil and cold-rolled coil combined this year, compared with 250,000 tons in 2007, said Irvan Kamal Hakim, Krakatau Steel's marketing director.
"We may cut steel exports by half this year because domestic demand is rising."
He said the rise in local demand will come from a number of national projects such as power plants and ship-building projects.
Hot-rolled coil is used in construction, ship building, and oil and gas pipelines while cold-rolled coil is often used in products such as automobiles and pipelines.
Hakim said the company planned to increase production capacity to 5 million tons a year in 2010, from 3.1 million tons.
Lack of raw material at home has forced the company to import iron pellets from South America and it plans to import pellets from India and Australia in 2010, Hakim said.