Chubu Steel Plate to Try 10% Japan Plate Market Share

Japanese electric furnace plate steel maker, Chubu Steel Plate aims more than 10% market share of Japanese plate production excluding shipbuilding and export use in new mid-term plan starting fiscal 2012 ending in March 2013. The firm’s president Mr. Masaharu Ohta said the firm’s market share is about 4% of plate production including shipbuilding and export use against original target of 5-6% by the end of fiscal 2011. Mr. Ohta said the firm has an advantage in plate market for construction machinery and construction use. The firm will concentrate on the market of advantage.

Chubu Steel Plate posted consolidated operating profit, recurring profit and net profit for April-June while the firm posted losses in same period of last year. The steel shipment increased by slightly less than 10% for April-June from same period of last year and the selling price increased by slightly more than 10%.

However, Chubu Steel Plate sees the demand slows for construction for July-September while the demand is firm for construction machinery. The firm expects monthly 40,000 tonnes output or less for July-September as same as April-June and more than 40,000 tonnes for second half of fiscal 2011. The firm integrated the units of rolling mill and cut processing line of its plant at headquarters to change the posting depending on operation rate of the lines in January.

Chubu Steel Plate sees the plate demand would increase for antiseismic reinforcement after the major earthquake. The firm also launched immediate delivery from stock by production control enhancement to respond the user demand. The firm tries to cultivate the new market under weak domestic demand and export slowdown from higher yen exchange rate.

Mr. Ohta said Chubu Steel Plate seeks the alliance with Nippon Steel for sales activity while the firms cooperate in steel rolling.