Sumitomo Metals Increases sales by 23% in Second Half of F2011

Sumitomo Metal Industries plans to increase sales volume by 23% to 6.6 million tonnes for September 2010-March 2012 from the same period of last year. The firm will get back opportunity of decreased output by the Great East Japan Earthquake in the first half of fiscal 2011, and expects to increase the sales by 200,000 tonnes per year to 12 million tonnes in fiscal 2011. The firm expects crude steel output decreases by 600,000 tonnes to 6.2 million tonnes in the first half of fiscal 2011 and increases by 1 million tonnes to 7.1 million tonnes in the last half of fiscal 2011, and increases by 400,000 tonnes to 13.3 million tonnes in fiscal 2011.

The firm’s sales decreased by 800,000 tonnes to 2.24 million tonnes for April-June from the same period of last year due to stop operation of Kashima iron works and decreased demand. The sales decreased by 600,000 tonnes to 1.1 million tonnes for steel sheet and steel products for building material, and decreased by over 105 for steel tube, slab or special steel. The firm expects the sales increases the sales by 200,000 tonnes to 3.1 million tonnes for July-September due to recovery of the demand.

As for automobile field, the firm forecasts completed car output is 3.8 million sets in the first half of fiscal 2011 and 5.4 million sets in the last half of fiscal 2011, and is increasing the output of steel sheet in Kashima iron works, special steel bar in Sumitomo Metals Kokura, steel tube in Wakayama iron works and crank shaft in Seikojo. There is possible these works becomes full operation in the last half of fiscal 2011 and the sales plan increases from schedule because car output is expected to achieve 5.7 million sets.

Steel tube sales is firm for natural gas development in overseas when the demand is recovered for seamless steel tube for oil tube. The firm expects to continue full operation for steel plate for marine structure and line pipe.

The firm expects total sales of steel products increases by 800,000 tonnes to 6.6 million tonnes in the last half of fiscal 2011, increases by 40,000 tonnes to 1 million tonnes for seamless pipe in fiscal 2011.