JFE Holdings Concerned on 800B Yen Higher Costs in F2008

Toshikuni Yamazaki, vice president of JFE Holdings, Japanese major steel maker, expects that the firm’s iron ore, coal and freight cost for the firm increases by over 800 billion yen in fiscal 2008 at the ended of March 2009 from last year. Mr. Yamazaki said the firm must raise the selling price of steel products by 30,000 yen per tonne with a view to that material and freight cost increases by 3,000 billion yen in all Japan, which asks users to understanding of the price hike. Mr. Yamazaki forecasts the firm’s iron ore and coal cost increases by 600 billion yen in fiscal 2008 from fiscal 2007, which forecast ferrous scrap purchase price for electric furnace makers, JFE group, increases by 20 billion yen. The firm’s material and freight cost increased by 100 billion yen in fiscal 2007. Especially, freight and ferroalloy price considerably rose in fiscal 2007. In fiscal 2008, mainly iron ore and coal price drastically increases.