[SMM Steel] Indian HRC Prices Hold Steady; European Access and Import Competition Remain in Focus

PT Krakatau Steel (Persero) Tbk (KRAS) has received cash compensation of IDR 130.74 billion from a cooperation agreement to utilize about 60,000 square meters of its land, located on Management Right (HPL) No. 15/Cilegon, with PT Cabot Indonesia. The deal involves Krakatau Steel as landowner, its 99.99%-owned subsidiary PT Krakatau Sarana Infrastruktur (KSI) as HPL holder, and Cabot Indonesia as the party using the land, and is carried out through a recommendation for a Building Use Right (HGB) certificate. Krakatau Steel said the transaction is intended to meet its obligations under the restructuring credit agreement and support operational funding, and it also reduces the company's outstanding restructuring obligations.

[Indonesia] With the workweek resumed, HRC prices have been updated and now stand at USD 525/metric ton FOB. The move reflects rising demand from buyers, which is also being felt at local mills. Demand has fluctuated over the past few days and influenced prices, and this was evident again today. There have been reports of raw material issues, but these have not affected the market. Mill-side market participants hope conditions will keep improving beyond spot price changes, though there is still no prediction of how strong the underlying fundamental trend will be.