Indonesia’s state-run steelmaker Krakatau Steel reported an operating loss of $9.5 million for the first quarter of 2014 on the back of lower revenue.
This compares with an operating profit of $15.6 million in the corresponding period a year ago, according to a filing at the Indonesia Stock Exchange on Wednesday April 30.
Krakatau’s net revenue for the quarter fell 25.4% year-on-year to $459.5 million.
The company did not comment on its first-quarter performance in its filing.
In its 2013 annual report released last month, however, it said it expected depressed steel prices from 2013-due to a still-recovering global economy and an oversupply of steel, mainly from China – to continue until 2014, at least until the beginning of the year.
“Later on, conditions are forecast to improve, in line with global economic recovery marked by rising demand for steel products in a number of countries,” it said, referring to Central America, South America and Europe.
The increase in global steel demand in turn will push up prices in the international market, leading to quite positive expectations for growth in the industry for 2014, it said.