Japan Major Stainless Makers Post Better 1H Results

Japanese 5 stainless steel makers posted higher sales for first half of fiscal 2010 started April from same period of fiscal 2009. Nippon Metal Industry, Nippon Kinzoku and Nisshin Steel’s stainless steel business posted recurring profit while they posted recurring loss for same period of fiscal 2009 while Nippon Steel & Sumikin Stainless Steel Corporation and Nippon Yakin Kogyo posted lower loss.

However, Japanese stainless steel demand would slow down in second half of fiscal 2010 due to foreign exchange loss and inventory adjustment in Asia. While Nippon Yakin Kogyo and Nippon Metal Industry expect higher profit in second half compared with first half, Nippon Kinzoku and Nisshin Steel forecast lower profit.

Nippon Metal Industry’s output increased by 7% to 257,000 tonnes in first half of fiscal 2010 from same period of fiscal 2009. However, the output decreased by 23% to 58,000 tonnes in July-September from April-June due to slowdown in export.

Nippon Yakin Kogyo’s sales volume increased by 39% to 124,000 tonnes for stainless steel and by 67% to 20,000 tonnes for high-performance alloy in first half of fiscal 2010 from same period of fiscal 2009. The stainless steel selling price increased by 16% 307 yen per kilogram. The firm expects the price reaches 320 yen in second half based on estimated US$ 10.50 per kg of nickel price and 82 yen per US dollar of exchange rate.

Nippon Kinzoku’s output increased by 31% to 24,906 tonnes in first half of fiscal 2010 from same period of fiscal 2009.

Nisshin Steel’s stainless steel sales were 250,000 tonnes in first half of fiscal 2010 as same period of fiscal 2009. The firm expects the sales are 490,000 tonnes in fiscal 2010.