Jaya Pari Steel, Tbk - PT. PEFINDO

BUSINESS INFORMATION
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Jaya Pari Steel, Tbk
Supported by Domestic Market Optimism in 2013
Indonesian steel market is forecasted to reach IDR71 trillion, up by 7% YoY
compared to IDR66 trillion in 2012. It is mainly caused by solid economic growth
in domestic that could drive to the increasing of manufacture, automotive and
infrastructure activities. Despite shadowed by financial crisis in USA and Europe,
we believe it will not affect domestic steel manufacturers since they can maintain
their sales volume by selling the products in domestic market.
in IDR trillion
80
70
60
50
40
30
20
10
0
Figure 2: Indonesia Steel Market and Steel
Consumption
41.5
March 20, 2013 Page 4 of 10
63.7
66.4
71.05
2010 2011 2012P 2013P
National Steel Market National Steel Consumption
Source: IISA, various source processed by Pefindo Equity & Index Valuation Division
Meanwhile, there is an increasing raw material price since early this year. As a
result, several steel manufacturer has increased their selling price around 13%-
15%. Raw material price in January 2013 compared to October 2012 has
increased significantly, particularly scrap and iron ore which rose by 15% and
30%, respectively.
in USD
200
180
160
140
120
100
80
60
40
20
Figure 3: Iron Ore Price
0
Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13
China iron ore spot price Hebei/Tangshan
Source: Bloomberg, Pefindo Equity & Index Valuation Division
12
10
8
6
4
2
0
in million ton