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Despite claiming not too worried about the impact of the planned increase of electricity basic tariff (TDL) by 15 percent in July later, the property entrepreneur now calculate precisely the impact of rising world steel prices continued to rise recently. “Because steel is the second largest component in property projects,” said Teguh Satria Head of Real Estate Indonesia (REI).

Teguh said the largest component of the cement takes about 20 percent of the portion of the cost of production or construction of houses. Although steel was up 20 percent, but he was assessing the impact will be quite significant. You see, steel including commodity prices are like a locomotive.

“The influence of very large steel prices of other components price trends,” explained Teguh. That’s why concerns about production rates continue to haunt.

Still, can not claim Teguh predicts the influence of steel price increases this world to the selling price of the property. “We see first trend for some time to come, or at least in this March,” he said.

Emerging lately steel prices, continued Teguh, the impact of development in China menggeliatnya. Bamboo curtain countries are now eager to do it the infrastructure projects and property ..

As a result, the world steel supply is absorbed large enough. At the same time, world steel production capacity was not increased. Some steel-producing countries to maximize utilisasinya confessed.

“We are producing the maximum, not even export that has been absorbed in the country,” said Irvan Kamal Marketing Director of PT Krakatau Steel.

Real demand of steel products Krakatau Steel until the end of last year was close to 225,000 tons per month. By leveraging the production capacity by 90 percent, Krakatau Steel could produce up to 200,000 tons of steel per month.

KS estimating international prices for steel, black plate in June 2010 could penetrate U.S. $ 700/ton, up 40 percent compared to the projected price during this month with a range of U.S. $ 500/ton.