Tokyo Steel Manufacturing Expands H-beam Output Share to 41.7%

Tokyo Steel Manufacturing, Japanese major electric furnace steel maker, expanded its H-beam output share to 41.7% among all domestic H-beam makers in fiscal 2005 ended March 2006. The share of Yamato Steel was 11.3% and consequently 2 independent electric furnaces accounted for over 50% output. Total amount of Japanese H-beam output decreased by 6.5% to 4.01 million tonnes in fiscal 2005 from fiscal 2004.The output share of Nippon Steel decreased by 5.1 percentage points to 14% in fiscal 2005 from fiscal 2004, the share order of which downed to 3rd from 2nd. The output share of JFE Steel upped to 2nd and Sumikin Steel kept 4th position in fiscal 2005. Integrated steel makers reduced their output in April-June 2005 and in and after February 2006 in order to adjust H-beam inventory volume in the market. The H-beam output by the 3 integrated steels decreased by 15.1% in fiscal 2005 from fiscal 2004. Output reduction rate was especially large for Nippon Steel.The output share of Nippon Steel and its group companies, Godo Steel and Topy Industries, decreased by 5.2 percentage points to 18.2% in fiscal 2005 from fiscal 2004. The share of JFE Steel and JFE Bars & Shapes Corporation decreased by 2.8 points to 17.2%. Sumikin Steel decreased the share by 0.5 points to 11.7%. These 3 integrated steel groups reduced their share by total 8.5 points, while Tokyo Steel increased the share by 8.5 points.Electric furnaces could increase their output share because integrated steels sought to balance the supply and demand in the market along their management plan to increase output of high-grade steel products and to maintain the market price of the products. The trend is expected to continue in fiscal 2006.