Japan 8 Nonferrous Metal Smelters to Double Net Profits in 1H

Total of consolidated net profits seems to double for April-September 2006 from the same period of 2005 at Japanese 8 major nonferrous metal smelters. All the smelters revised up their earnings estimates for April-September 2006 from original forecasts when ingot prices of nonferrous metals stays high including copper and demand is firm for their products other than primary ingot such as electronic materials. Mitsubishi Materials, Sumitomo Metal Mining, Dowa Mining, Furukawa, Toho Zinc and Nittetsu Mining also revised up the earnings estimates for full year of fiscal 2006 ending March 2007. Each of the 8 smelters could post consolidated net sales at over 100 billion yen in fiscal 2006.In fiscal 2005 ended March 2006, 7 smelters posted record sales and profits thanks to the surge of nonferrous metal prices. They seem to gain new record sales and profits for fiscal 2006. Most of the smelters supposed copper price be around US 200 cents per pound in the first half of fiscal 2006. However, monthly averaged copper price at London Metal Exchange much exceeded US 300 cents after May indeed and stays at around US 340 cents of high level currently.Additionally ingot prices also increased for zinc, lead and nickel. Net profit for the first half of fiscal 2006 would increase by 2.9 times from the same period of 2005 at Toho Zinc, by 2.7 times at Furukawa, by 2.3 times at Sumitomo Metal Mining and Dowa Mining, by 82% at Mitsubishi Materials and by 31% at Nittetsu Mining. Net profit would increase by 2.5 times at Mitsui Mining & Smelting including the gain from the transfer of copper smelting business to Pan Pacific Copper. Nippon Mining & Metals estimates the recurring profit would increase by 69% in the first half of fiscal 2006 from the same period of 2005 including investment profit on equity method from overseas mines for which the firm invests.