Japan Steel Dealers Should Pursue Moral Based Growing Strategy, Mr. Hayashi

Mr. Yoshihiro Hayashi, chairperson of Japan Steel Products Dealer’s Association, said to a reporter of Japan Metal Bulletin that steel dealers in local areas suffer weak demand and then the government should carry out any fiscal actions, incentives to stimulate domestic demand. He pointed out disaster-prevention measure is especially urgent issue when natural disasters happen frequently in Japan such as the Great East Japan Earthquake or heavy rain mainly in West Japan. He insisted seismic strengthening works are necessary for buildings and bridges as well as embankment works beside shores those which can contribute to domestic steel consumption.

Mr. Hayashi referred to the integration plan between Nippon Steel and Sumitomo Metal Industries scheduled in 3Q 2012. He said reorganization of domestic steel industry is necessary when economic trend changes globally and dynamically. He emphasized major integrated steel makers should remain productive operations in Japan and keep stable material supply to the users.

He suggested steel dealers should seek each company’s own survival strategy though reorganization would also emerge among dealers. Steel dealers should strictly refrain from unprofitable bargains, he insisted. And he said each dealer should pursue their unique local and historical characteristics to determine sales and management outlooks, including offshore strategies.

Mr. Hayashi indicated said Japanese enterprises should always remind any returns to local community and Japan country even though they must go out to overseas markets under high yen rate. He said the moral is necessary for steel makers to maintain reproductions and for steel dealers and users to gain profits stably.