Government-controlled PT Krakatau Steel Tbk (KRAS) sees anti-dumping policy as a protection against unfair trading. The policy will invite foreign investment to build factories in Indonesia. If they build factories overseas, then they have to trade with Indonesia. So, anti-dumping is a protection against unfair trading, not merely a protection for the company.
The company sees no relation between stock price and trading practice. Stock price is associated with stock exchange, global condition and market sentiment. But trading practice is closely related with sales volume. The sales volume last year increased 11.38% compared to 2011 sales.
However, the company admits a problem on price, which is related to the dumping activity. Dumping happens because of overcapacity. Overcapacity happens because of worsening global economy, in Europe and in China.
If the company keeps producing amidst overcapacity, the consequence is the market price. Selling price must follow the global market although it is below the production cost or domestic price.
Source: President Director Irvan K. Hakim after shareholders meeting in Jakarta