Japan Major Electric Furnace Steels Post Better Quarterly Results

Japanese major 11 electric furnace steel makers posted higher recurring profit for April-June from same period of 2010, according to major 12 makers’ results announced by Tuesday. They increased the steel selling price to cover higher ferrous scrap cost. Tokyo Steel Manufacturing posted first profit in 8 quarters while Tokyo Tekko regained profitability. Asahi Industries and Hokuetsu Metal posted narrower loss.

Ferrous scrap cost increased by around 1,000 yen to around 37,000 yen per tonne in April-June from same period of 2010. Their concrete reinforcing steel bar selling price increased by around 5,000 yen while the price increase of shapes was limited. Tokyo Steel reported the averaged steel selling price increased by 3,000 yen to 73,500 yen.

Eight makers of the 12 makers revised the profit target when they announced the quarterly results. Chubu Steel Plate and Tokyo Kohtetsu unveiled full year profit targets while they failed to disclose the target in the beginning of the fiscal year. Tokyo Tekko revised the target upward for the half year results. Other 5 makers revised the results outlook downward. Their business condition gets severer due to slow domestic demand and higher yen rate.