Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indonesia’s Krakatau Steel mill commenced production of hot-rolled coil (HRC) from the Hot Strip Mill2 (HSM2) factory on May 17. The HSM2 has a production capacity 1.5mn mt annually. 


The steel mill’s construction started in 2016 and, equipped with the most advanced technology, has an investment of $521mn. 

The factory manufactures customized HRC steel products meant to complement the HSM1 Krakatau steel plant, functioning since 1983. 


This new factory produces HRC for automotive needs and steel with a thickness range of 1.4-16mm and width between 600mm and 1,650mm, which is the first of its kind in the country. 


Krakatau Steel’s director Silmy Karim earlier this week said that the company’s total operational cost savings has the potential to reach 25pc from HSM factories because of decreased energy consumption and optimal labour use.



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