Japan Major 8 Smelters Eye Mixed Results

Nippon Mining Holdings, Mitsubishi Materials, Dowa Holdings and Furukawa revised the outlook, after Japanese major 8 nonferrous smelters announced the financial results for April-June by Friday. They enjoyed firm demand for automobile and electronics along with the high metal prices. Mitsui Mining & Smelting revised the mid-year operating profit outlook downward due to price down for liquid crystal materials. The smelters reported mixed results while they posted record profit for the year to March 2007.

The 8 smelters reported higher sales for April-June from same period of 2006 while 5 of them posted higher recurring profit. Nippon Mining Holdings reported the copper ingot price was 347 US cents per pound, which increased by 20 US cents from same period of 2006, and the firm expects 323 US cents for half year to September.

The higher metal prices including zinc, which increased by US$ 336 to US$ 3,664 per tonne in April-June from same period of 2006 lifted the smelters’ profit in April-June. Offshore mining interests also lifted the profit while the higher raw materials cost suffered the profitability for the smelting business.

See attached table.