Looking at the steel raw material prices continued to climb, PT Krakatau Steel to remind the downstream producers to be careful because the steel raw material prices are predicted this year could increase to 130 percent.

Due to rising prices of steel raw materials, in Japan starting this year to apply raw material purchase contracts per quarter. This was done to anticipate the development of steel price increases of raw materials.

In Indonesia, it is possible too, right, adopted the system of raw material purchase contracts as of this quarter. "Not yet final, but likely will be implemented starting the second quarter of this year," said PT Krakatau Steel marketing director Irvan Kamal Hakim.

Implementation of the system of steel raw material purchase contracts per quarter is the first time during last 40 years. "We can not predict the impact of this new contract system to the downstream producers as there is no example of his model," Irvan said