Itoh Iron & Steel Reduces the Rebar Sales by 25%

Itoh Iron & Steel, Japanese major rebar maker will reduce the sales volume by 25% in the last half of fiscal 2008 ending March 2009 compared with the same period of last year. Mr. Masato Matsushita, president said the sales volume is expected to decrease significantly in January-March 2009 when condominium building sales is slower and general contractors are continuing the conservative buying. The firm will more decrease in Tsukuba plant and Ishinomaki plant.

The firm’s sales volume was flat in the first half of fiscal 2008 from the corresponding period of last year. Tsukuba plant’ output was average 23,000 tonnes per month in the first half of fiscal 2008 and Ishinomaki plant’ output was average 21,000-22,000 tonnes per month. In the last half of fiscal 2008, Tsukuba plant reduces to around 20,000 tonnes per month in the last half of fiscal 2008 and Ishinomaki plant reduces to around 17,000 tonnes. Tsukuba plant will decrease number of charge for electric furnace to 9 charges from 5 charges, and will meet the output with the demand.

The firm will reduce the inventory of the rebar and billet. Tsukuba plant decreases the rebar stock to below 15,000 tonnes by 3,000 tonnes.

The firm increased the sales to 23.1 billion yen by 36.8% for the half year ending of September from the result in last year, got the recurring loss at 1 billion yen. The average selling price increased by below 22,000 yen per tonne for April-September from the corresponding period of last year while the purchasing price of ferrous scrap increased by above 24,000 yen and other material prices increased by 5,000 yen. The firm prospects the selling price at average 85,000 yen per tonne in the last half of fiscal 2008, the ferrous scrap purchase price at average 28,500 yen and the recurring profit at 1.9 billion yen in the business year ending in March 2009.