JFE Steel Plans Higher Steel Output in 3Q, 4Q of F2010

JFE Steel plants to increase the raw steel output in October-December from 7.09 million tonnes in July-September and more in January-March 2011, said Mr. Yoshio Ishikawa, vice president of JFE Holdings, which is parent company of JFE Steel. The output will reach14.65 million tonnes in second half of fiscal 2010 ending March 2011 compared with 14.35 million tonnes in the first half. JFE Holdings expects offshore steel supply could get balanced from oversupply in the year when Chinese makers keep lower production.

JFE Holding plans 220 billion yen of capital expenditure in fiscal 2010. The firm plans to invest for raw material resource while the firm plans to invest 1 trillion yen including offshore business expansion in 3 years through fiscal 2011.

JFE Holdings aims to increase the profit through the analysis of highly profitable steel makers including POSCO, Mr. Ishikawa said. The firm aims to increase recurring profit rate to 10% in a short period and increase the profitability more while the rate was around 15% in fiscal 2004-fiscal 2007.