Japan Major Smelters Post Better April-June Results

Japanese major 8 nonferrous metal smelters posted better consolidated financial results for April-June than before by Monday. The seven smelters posted higher recurring profit compared with same period of 2009 due to higher price for copper, nickel and other metals while they gained from better business condition for electronic materials. The six smelters revised the half year outlook upward. However, some makers posted lower profit from January-March.

They posted better profitability thanks to resource and smelting business. JX Nippon Mining & Metals’ resource development unit posted 4.5 times profit for the unit in April-June compared with same period of 2009 when copper price increased to 319 US cents per pound from 212 US cents. The smelting and refining unit posted 2.7 times of profit due to higher copper price and better margin for sulfuric acid.

Sumitomo Metal Mining posted 2.3 times of recurring profit for April-June compared with same period of 2009 when the nickel price increased to almost double at US$ 10.19 per pound and the electrolytic nickel sales increased along with nickel expansion at Niihama plant. The mineral resources unit and smelting & refining unit posted 2 times of profit under higher copper price.

Mitsui Mining & Smelting posted more than double of profit for electronic material related units in April-June compared with same period of 2009. The firm posted 8.9 billion yen of recurring profit with higher profit contribution of metals, minerals & environmental engineering unit.

Compared with January-March, the April-June recurring profit was higher for JX Nippon Mining & Metals, Dowa Holdings and Nittetsu Mining. However, other makers posted lower profit while they improved the profitability from the bottom after financial crisis.