JFE Container Increases Thin Steel Drum Supply for Cost Reduction

JFE Container, Japanese major steel drum maker, is shipping drum at 5,000 tonnes per month for the size with less than 1.0 millimeters thickness in April and May. The shipping is expected to increase by about 3.5 times in fiscal 2008 at the ended of March from 2007. The firm’s drum is the size with mainly 0.8 millimeters thickness. Drum thickness is thinning when the firm is making a proposal thin thick drum for cost reduction of users. It is certain that drum price increases when cold-rolled steel sheet price rose into July. Drum thickness is more thinning. Drum price for the size with 0.8 millimeters thickness is cheaper than a drum with 1.2 millimeters thickness by about 10%. Users are increasing to use 0.8 millimeters thickness drum.The firm will maintain competitive power of drum by thinning drum and high-tensile drum when users may stop use drum if drum price rises substantially or cold-rolled steel sheet supply reduces by a large margin.Many drum is re-used after cleaning. The firm cooperates to supply high-tensile and thinning drum with recycled drum trader and users when it is hard to purchase the material.