Posted on 21 Jun 2023
PT Krakatau Steel has started the restoration of its hot strip mill no.1 (HSM1) which was hit by a fire on 5 May. It has sent out a tender to potential companies to carry out repairs, industry sources tell Kallanish. It may take 1-2 months for work to start after the preferred candidate is selected.
Some market sources estimate the mill could be out of action for around 6-7 months. “The electric room was gutted,” a Singapore trader reports hearing from Jakarta-based engineering sources.
Meanwhile, the company is sourcing hot rolled coil from Posco, trading sources say. Slab inventory from sister company PT Krakatau Posco is being shipped to the South Korean mill and returned as HRC product. All the necessary export and import licences are being applied for this arrangement, a trader says. Krakatau Steel's HSM1 has a 2.4 million tonnes/year capacity.
Source:Kallanish
