Yamato Steel and Siam Yamato Steel Post Y/Y Higher Sales in 1H F2011

Yamato Kogyo, Japanese major electric furnace steel maker group, announced its 3 large subsidiaries’ first-half-year results for fiscal 2011 on Monday. Japanese subsidiary, Yamato Steel increased the sales volume by 30,000 tonnes to 260,000 tonnes for April-September 2011 from the same period of fiscal 2010. Selling price of steel products improved by 5,000 yen to 75,000 yen per tonne while ferrous scrap purchase price upped by 4,000 yen to 38,000 yen per tonne. The spread widened by 1,000 yen between the selling price and the material cost.

In the second half year, Yamato Steel forecasts the sales volume increases by 30,000 tonnes to 260,000 tonnes from the same period of fiscal 2010. Steel product selling price is expected to improve by 3,000 yen to 72,000 yen while ferrous scrap cost to decrease by 3,000 yen to 32,000 yen. The spread would widen by 6,000 yen.

As for Thai subsidiary, Siam Yamato Steel, the first-half sales volume for January-June 2011 increased by 80,000 tonnes to 450,000 tonnes compared with the same period of 2010. The selling price improved by 2,000 bahts to 25,000 bahts per tonne. Ferrous scrap cost surged by 2,500 bahts to 14,000 bahts per tonne. The spread narrowed by 500 bahts.

South Korean subsidiary, YK Steel decreased the sales volume by 90,000 tonnes to 360,000 tonnes for January-June 2011 from the same period of 2010. Selling price improved by 70,000 won to 790,000 won per tonne and ferrous scrap cost upped by 80,000 won to 510,000 won per tonne. The spread narrowed by 10,000 won.