Oct 11, 2010

Who are Krakatau Steel's contenders?

Indonesia's largest steel maker PT Krakatau Steel (Persero) Tbk was a leading player in the hot rolled coil (HRC), cold rolled coil (CRC), and wire rod markets in the country last year.
The IPO prospectus announced today reveals that referring to CRU data, Krakatau controlled 65% market share with production volume of 1.46 million tons in the HRC market last year.
Indonesia's total consumption for HRC reached 2.27 million tons.
In the CRC and wire rod markets, Krakatau Steel curbed 33% and 32% market shares respectively in 2009. The national consumptions for CRC and wire rod reached 1.39 million tons and 807,000 tons last year. Imported HRC, CRC, and wire rod took 21%, 49%, and -4% market shares last year.
Who are main competitors for Krakatau Steel?
In the HRC domestic market, Krakatau Steel faces fiercest contenders such as PT Gunung Raja Paksi, PT Gunawan Dianjaya Steel.
Main competitiors in the CRC market are PT Essar Indonesia and PT Little Giant Steel, while in wire rod market, Krakatau Steel's contenders are PT Ispatindo and PT Master.
The state-owned steel manufacturer also faces the other competitors such as PT Gunung Garuda in the section steel market, PT Hanil Jaya Metal Works, PT Jakarta Cakra Tunggal Steel, PT Master, PT Ispat Panca Putra, and PT  Bhirawa Steel in the bar steel market, and PT Bakrie Pipe Industries, PT Bumikarya Steel Industry, PT South East Asia Pipe Industries, and PT Steel Pipe Industry of Indonesia in the pipe steel market.

Disclosure: No position at the stock mentioned above.

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